Slight Increase in Dollar Rate

The dollar continued to make gains on Tuesday, with minor increases in mid-morning trading at NIS 4.52. The representative rate for the dollar on Monday was set at NIS 4.513.

In an interview with Army Radio on Tuesday, Governor of the Bank of Israel, David Klein, reiterated that he was not ruling out raising interest rates in the coming weeks in order to control inflation if needed, but that he would not interfere with foreign currency trading in order to prevent further increase of dollar rate.

On Monday, veiled threats of an interest rate hike by Klein cooled down the run by the dollar against the shekel, according dealing room traders. The dollar hit a record NIS 4.55, but later in the day it slipped back to a level of NIS 4.50 after what foreign currency dealers said was profit taking, primarily by exporters and other institutions who held dollars before the central bank's announcement of an interest rate cut two weeks ago and decided that the time was ripe to cash in.