Dollar-shekel Options Stable at NIS 3.60

Trading in options on the dollar-shekel exchange rate yesterday reflected a rate of about NIS 3.60, the same as the representative rate set on Friday.

There is no official forex trading on Sundays and no representative rate set by the Bank of Israel. Trading volume in dollar-shekel options was normal for a Sunday.

Traders said forex investors were sitting on the fence and waiting for more information before taking new positions until it becomes clear which, if any, of the decisions made at the International Monetary Fund Annual Meeting in Washington are actually implemented.

The dollar recovered somewhat on Friday after a prolonged slide. The Bank of Israel bought somewhere between $50 million to $100 million Friday and the greenback rose 0.3% against the shekel to a representative rate of NIS 3.601.

The euro fell against the shekel by 0.3% to a representative rate of NIS 5.008 on Friday. The central bank purchased $650 million on Thursday to prop up the dollar.

Finance Ministry won't intervene in forex market

Bank of Israel Governor Stanley Fischer and Finance Minister Yuval Steinitz will meet along with their senior advisors this week when they return from the International Monetary Fund Annual Meeting in Washington, in order to discuss the shekel's appreciation against the dollar.

Treasury officials told TheMarker that the Finance Ministry most likely will not take any action to stem the dollar's dropping value.

The ministry has not intervened in foreign currency markets in almost 20 years, through either legislation or taxation, they pointed out, even though many senior treasury officials feel Fischer's interventions are mistaken.