The Israeli currency continues to depreciate and is trading at its weakest against the US dollar since November 2023.
With the country remaining tense as Iran vows a reprisal over the assassination of Hamas political leader Ismail Haniyeh in Tehran last week, the shekel continues to depreciate and is trading at its weakest against the US dollar since November 2023.
This afternoon, the Bank of Israel set the representative shekel-US dollar exchange rate up 0.497% in comparison with Monday’s representative rate, at NIS 3.843/$, and the shekel-euro rate was set 0.107% higher, at NIS 4.192/€.
Mizrahi Tefahot Bank chief markets economist Ronen Menachem says, ""Regarding the shekel, as the depreciation continues and even accelerates, in view of an increase in the economy's risk premium and the outflow of investments (local and foreign), the likelihood increases that the Bank of Israel will intervene in trading similar to its practice in the past. Here it is important to note that if at the same time the stock markets abroad also stutter, the transition may be limited. Also, a potential recovery of the local stock market in the event of a lull in fighting would probably be accompanied by a renewed strengthening of the shekel."
Published by Globes, Israel business news - en.globes.co.il - on August 6, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.
Shekel credit: Shutterstock Vladirina 32