Shekel recouping losses, trading against dollar at NIS 4.8843

Today's currency trading opened with the U.S. currency trading at NIS 4.905, up 0.6% from Friday's representative exchange rate but down from the NIS 4.915-4.95 range in which yesterday's dollar options trading took place. In the past few minutes, the shekel slide has slowed and the dollar is now trading at NIS 4.8843, just 0.17% above the representative exchange rate and down 0.4% from its opening position.

Investment bank Excellence notes that the cabinet approval of the emergency economic plan and the end of the blockade of Arafat's compound, as well as end of month corporate currency conversion, are all contributing to the shekel regaining some strength. Excellence economists add that yesterday, after the dollar reached NIS 4.95 in local trade in options trade, many investors "cut" positions and ran.

Nonetheless, Excellence believes that the dollar crossing NIS 4.92 in actual currency trade, would indicate lack of investor confidence in the treasury. Excellence notes that the dollar's current support level is still NIS 4.82 and the resistance level is NIS 4.91.