Trading in three and six-month options indicates a 0.3% appreciation in the shekel-dollar exchange rate. The foreign currency mutual funds are raising millions of dollars.
The shekel-dollar exchange rate trend this week is unclear. Current trade in shekel-dollar options points to a continuance of the accelerated shekel-dollar depreciation. The exchange rate in option trading rose another 0.9% to a record NIS 4.71/$, following the record representative rate of NIS 4.667/$ last Friday, representing a shekel depreciation of over 10% since the major depreciation began in December.
On the other hand, three and six-month shekel-dollar options show a halt in the process, and even a slight NIS 0.012 fall in the exchange rate. The exercise price for these options was set at NIS 4.655/$, amounting to a 0.3% shekel appreciation.
Another indicator pointing to a possible halt in the exchange rate rise is the sharp decline in foreign currency trading volume in February, compared with the record in January. Total foreign currency trade fell 35% in February to a daily average of $1.58 billion, compared with $2.43 billion in January.
More than 60,000 options were traded today. The mutual funds, which were again behind the lively options trading, raised large sums today estimated in the millions of dollars.
Published by Israel's Business Arena on February 10, 2002