Shekel weakens sharply on Iran escalation concerns

The shekel is weakening sharply today against the US dollar and the euro. This afternoon, the Bank of Israel set the shekel-dollar rate by 0.619%, to NIS 3.736/$, and the shekel-euro rate was set 0.79% higher, to NIS 4.055/$.

In the late afternoon, interbank trading fell after the shekel interest rate was set further. The price of the shekel against the dollar increased by 1.03%, reaching 3.775 shekels/dollar, and the price of the shekel against the euro rose by 1.03%, reaching 4.097 shekels/dollar.

On Friday, following news that the Israeli army had killed Hamas leader Yahya Sinwar, the Bank of Israel set the representative shekel rate for the dollar by 1.329%, at NIS 3.713 per dollar, and the representative shekel rate for the euro was set at 1.23%, at NIS 3.713 per dollar. 4.023 shekels/euros.

“Concerns about the imminent security escalation towards Iran will push the dollar back above the 3.75 shekels per dollar level,” Yossi Freeman, CEO of Prico Risk Management, Finance and Investment, said. “There is no change in our assessment of the possibility of a new security escalation.” The rise in the value of the shekel is still limited, and the dollar may once again test the level of 3.8 shekels to the dollar. Trading rates for energy products show that markets do not see a high probability of a security escalation that would harm energy sources. The estimate is that there will be only a limited response and against the backdrop of a higher supply of foreign currencies from exporters required for the shekel and, on the other hand, a lower demand for foreign currencies, the dollar may return to 3.7 shekels/$. level in the near future.

Published by Globes, Israel Business News – en.globes.co.il – on October 21, 2024.

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