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Shekel rallying slightly from two-year low

Domestic banks generated most of the morning demand but foreign banks are starting to buy dollars, say dealers

The shekel is continuing to steadily weaken against the dollar, dealers report today. The dollar-shekel rate climbed to a two-year high of NIS 4.2950 Wednesday morning, but slipped a little at noon to NIS 4.2890, up 0.5% compared with the representative exchange rate set on Tuesday.

Bank Discount's dealing room reported that Israeli banks are generating most of the demand at this time. But foreign banks are starting to stream in buy orders for dollars.

Exporters are taking advantage of the high dollar-shekel rate to sell dollars, the dealers say.

Excellence investment house says that the public is starting to invest more in dollar-denominated investment options. Capital market sources believe the public's refound taste for dollar-denominated channels could weaken the shekel further, bringing the dollar-shekel exchange rate to about NIS 4.35 or NIS 4.40.

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