The representative shekel-dollar exchange rate rose by a moderate 0.08% to NIS 4.732/$, after volatile trading.
The shekel traded down 0.2% to NIS 4.745/$ in the morning, but then recovered to NIS 4.728/$.
The trend changed around noon, when a number of business customers and foreign companies operating in Israel took advantage of the high exchange rate to move forward their foreign currency transfers, in order to pay employee salaries, also partly due to the approach of Christmas.
The Bank of Israel will not publish representative rates on December 25 or January 1.
The Israeli foreign currency market already reflects a moderate interest rate cut, as do the short-term loan yields. A total interest rate reduction of 1% is expected over the next six months.
The shekel-dollar exchange rate has risen by NIS 0.522 since the interest rate was lowered by 2% on December 22, 2001, reflecting a 12.5% depreciation.
Published by Globes [online] - www.globes.co.il - on December 23, 2002