Gaza optimism lifts shekel to four-month strongest against dollar

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative

A report in "The Washington Post" on a Gaza ceasefire agreement and that Hamas has agreed to relinquish authority has boosted the shekel and pushed the Tel Aviv Stock Exchange to near record levels.

A report in "The Washington Post" that a Gaza ceasefire agreement is within reach has boosted the shekel and pushed the Tel Aviv Stock Exchange to near record levels.

The shekel is strengthening today against the US dollar and against the euro. In late morning inter-bank trading the shekel is 0.82% lower against the dollar at NIS 3.633/$ and 0.66% lower against the euro at 3.938/€.

Yesterday, the Bank of Israel set the representative shekel-dollar rate down 0.272% from Tuesday, at NIS 3.663/$, and the representative shekel-euro rate was set 0.287% lower at NIS 3.964/€. Just last week the shekel was at a three month weakest against the dollar at NIS 3.76/$ and now it is at its strongest against the US currency since March.

The Tel Aviv 35 Index is currently 1.32% higher at 2,067.83 points, within touching distance of its record high of 2,080.12 in January 2022.

"The Washington Post" reported last night that the "Biden administration appears close to a cease-fire deal that would halt major fighting in Gaza, release some Israeli hostages and surge humanitarian aid to desperate Palestinian civilians."

A senior US official told "The Washington Post" that the framework was agreed and that details were now being negotiated on how it would be implemented.

"The Washington Post" reported, "The agreement, described Wednesday by US officials, envisions a three-stage resolution of the conflict. First would be a six-week cease-fire, during which Hamas would release 33 Israeli hostages, including all female prisoners, all men over 50 and all who are wounded. Israel would release hundreds of Palestinians from its prisons and withdraw its troops from densely populated areas toward the eastern border of Gaza."

"The Washington Post" also reported an interim governance plan, "In which neither Hamas nor Israel would rule Gaza. Security would be provided by a force trained by the US and backed by moderate Arab allies, drawn from a core group of about 2,500 supporters of the Palestinian Authority in Gaza who have already been vetted by Israel. Hamas has told mediators that it is 'prepared to relinquish authority to the interim governance arrangement,' a US official said."

Published by Globes, Israel business news - - on July 11, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative
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