Today's foreign currency trade opened with the dollar trading at NIS 4.795, the shekel slightly stronger than in yesterday afternoon's session. However, the shekel quickly lost ground and traded at NIS 4.8 against the U.S. currency, 0.15% below yesterday¿s representative exchange rate of 4.793.
Foreign exchange specialists Prico predict a continued wide trading range with strong supply at NIS 4.80 ¿ 4.82 curbing shekel devaluation. However, security events continue to moderate any revaluation potential.
Prico noted that the March consumer price index increase of 0.5%, the lower level of prior projections, supported dollar strength in late trading yesterday, although the aggregate Q1 CPI rise of 2.4% with an upper limit of the 2002 target at 3%, could support a Bank of Israel hike of interest rates.
Like the dollar, the euro was stronger this morning against the shekel and is now trading at NIS 4.229, 02% above its representative exchange rate.