A week later, the Israeli currency was appreciated against the world’s major currencies, weakening the shekel today. Early in the afternoon, the SHEKEL exchange rate – the dollar exchange rate increased by 0.82 % at 3.591/$ and Shekel – the euro rate by 0.68 % in NIS 3.705/€.
Yesterday, the Bank-Dollar HEKEL-DOLLR rate raised 0.338 % from Friday, at 3.562/$ NIS, and the Shekel-Euro rate is 0.217 % at 3.680/€.
The sharp decline in Shekel comes following the Hamas announcement yesterday that Israel violated the ceasefire, and the hostage was postponed until further notice. Hamas later reduced its statement, stressing that “the advertisement is a warning step.” In the following hours, the shekel weakened about 3.58/$ NIS but the weakness has managed today somewhat.
“This is a correction, Shekel will continue to reinforce”
Modi Shaftirist, Hapoalim Globes, tells this change is completely due to geopolitical influences: “From Hamas’s announcement yesterday, we saw a shekel weakening, and we see this morning’s continuation as well.” However, he insists that Shekel is still very strong, and until the beginning of the week, Shekel has strengthened more than 7.3 % since November 2023, after the start of the war. Cheving believes that the current consumption of a shekel is part of the general image in the market: “We see a specific correction as soon as there is a deterioration in stability in the security sector, it is logical.”
Yotav Costica, Chief Investment Director of the Investment Council, YouTav Costica, says the last weakness of Shekel is marginal. “The market sees the latest news as attempts to negotiations, and everyone is reviewing their muscles, but in the end, the main edition will happen on Saturday. For the foreign exchange market, the next version is much more important, because without their release the hostages will return, the war in the south will return to full power The risks will be ascended. “
Costica adds that without an event that would shake the geopolitical situation, she will boost Shekel again. “Ultimately, as calm continues, we will see a decrease in deficit, moderate risk premium, and ultimately the low interest rate. These are good market elements and expect the best economic conditions, and will enhance shekel.”
It seems that even during the ceasefire, which is fragile, shekels continue to volatility between a wide range. Recently, many economists raised concerns, including the Banque Israel model, indicating a very strong shekel if not the effects of war. Estimates indicate that Shekel can reach 3.4/$ and even enhance it.
It was published by Globes, Israel Business News – En.globes.co.il – on February 11, 2025.
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