Shekel strengthens despite High Court gas ruling

The shekel was strengthening in inter-bank trading this morning against the dollar and against the euro despite yesterday's ruling by the High Court of Justice against the gas framework agreement, which puts a major question mark against the future development of the country's gas fields. The shekel-dollar exchange rate is down 0.25% at NIS 3.832/$ compared with yesterday's representative rate, and the shekel-euro rate is down 0.29% at NIS 4.281/€.

Before the Purim and Easter holidays on Wednesday, the Bank of Israel set the shekel-dollar representative rate down 0.234% at NIS 3.842/$, and the representative shekel-euro rate down 0.671% at NIS 4.293/€.

FXCM Israel said in its morning survey, "After sinking last week to 3.819/$, its lowest level since December, the shekel-dollar exchange rate is trying to move upwards against the backdrop of the bombshell dropped last night by Israel's High Court of Justice in cancelling the gas framework agreement. The cancellation may have a major impact on the local foreign exchange and stock exchange market. If the stock market responds negatively as we began to see yesterday evening, then the dollar could strengthen. The decision could also harm the image of Israel's economy and in the long term could affect the confidence of foreign investors in Israel's economic and political leadership."

Published by Globes [online], Israel business news - www.globes-online.com - on March 28, 2016

Shekel strengthens despite High Court gas ruling

FXCM Israel: The High Court decision could hit the confidence of foreign investors in Israel's economic and political leadership.