The terrorist attack in central Jerusalem and the expected Israeli response caused the fall in the shekel.
The shekel-dollar representative exchange rate rose 0.05% to NIS 4.234. The terrorist attack in central Jerusalem and the expected Israeli response caused the fall in the shekel.
The shekel dropped 0.28% against the basket of currencies to NIS 4.2912. The shekel is currently 3.4% above the fluctuation band lower limit. Daily foreign currency trade ranged from $2 billion to $2.5 billion last week.
Most market activity was by banks and foreign financial institutions. 95% of the foreign activity was in hedging instruments against devaluation, such as dollar-shekel swap transactions. The daily volume of foreign currency activity by foreign investors ranged from $1.2 billion to $1.4 billion.
Published by Israel's Business Arena on August 9, 2001