Israeli shekel, stock market fall amid regional tensions
Date
8/13/2024 7:48:05 AM
(MENAFN) On Monday, the Israeli shekel experienced a notable decline of 1.5 percent against the U.S. dollar, reflecting growing investor anxiety over potential regional conflicts. The shekel was trading at 3.77 to the dollar by 1255 GMT, down from 3.72 on Friday and fluctuating around a session low of 3.78 shekels. This depreciation came as investors expressed heightened concerns about possible attacks on Israel by Iran and Hezbollah from Lebanon, leading to a significant drop in market confidence.
In parallel with the weakening currency, Tel Aviv's Stock market also suffered, with shares falling by more than 1 percent. This downturn in the stock market reflects the broader investor unease regarding escalating regional tensions and their potential impact on Israel's economic stability. The drop in stock values underscores the market's reaction to the increased risks and uncertainties surrounding the geopolitical situation.
Moreover, Phoenix data revealed a sharp rise in the shekel's implied volatility measures over recent days. The three-month volatility index has surged to approximately 11 percent, marking its highest level since November. This increase in volatility indicates growing market uncertainty and the elevated risk perceived by investors amidst the ongoing geopolitical tensions in the region.
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