The shekel started today’s session by extending a 0.9% depreciation it recorded against the dollar on Friday, as investors remained nervous about next week’s crucial budget vote in the Knesset.
The budget will be brought before Israel’s parliament for its second and third readings next Monday, and ratings agencies have warned they may downgrade Israel’s creditworthiness if the budget is not approved.
The shekel is currently trading against the dollar at NIS 4.7067/$, a 0.2% depreciation since Friday, when the representative rate was fixed at NIS 4.698/$. The modest depreciation was expected, after the shekel dipped to NIS 4.705/$ in derivatives trading on the TASE on Sunday. Today’s depreciation has brought the shekel to levels last seen four weeks ago.
The shekel’s recent weakness has also been attributed to last week’s 3.8% decline on Nasdaq, where several Israeli companies saw valuations slashed. Check Point (Nasdaq: CHKP), one of Israel’s largest companies on the Nasdaq, lost 15% of its market capitalization last week.
At web-posting, Nasdaq futures (-0.2%) indicate a flat to slightly negative opening for technology stocks when New York markets start a new week of trading later today.
Against the euro, the shekel currently stands at NIS 4.7492/€ - a 1% depreciation since Friday - as the European currency advanced beyond the $1 mark in world markets. The dollar is weaker against key currencies today, after the US government released worse than expected unemployment numbers for November on Friday.
Published by Globes [online] - www.globes.co.il - on 9 December, 2002