Israeli Shekel Bounces Back Against USD Amid Conflict

11/7/2023 4:11:24 AM

(MENAFN- Famagusta Gazette) The official rates of Israeli shekel on Monday bounced back to 3.877 shekels per U.S. dollar, after hitting an over 11-year low against the dollar 10 days ago, according to the Israeli central bank.

The shekel had been gradually weakening against the dollar since the beginning of 2023. This trend intensified since the conflict between Israel and Hamas broke out on Oct. 7.

After hitting the 11-year low of 4.081 shekels per dollar on Oct. 27, the shekel has appreciated by 5.26 percent to the current rate.

Israeli analysts attributed the recent strengthening of the shekel to the global weakening of the dollar due to lower-than-expected employment figures in the United States and sharp price increases in the global stock markets.

They also mentioned local factors, of the non-escalation of fighting on the border with Lebanon, Israeli businesses' recovery signs, and the central bank's ongoing plan announced on Oct. 9 to sell up to 30 billion dollars.

Joseph Freiman, CEO of Prico Group which specializes in foreign exchange markets, told Xinhua that the potential appreciation of the shekel is limited due to the high uncertainty regarding the scope of the Israeli army's ground operation in Gaza and the conflict consequences. ■

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Famagusta Gazette

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