Time: 2024-07-31
The Israeli new shekel is experiencing a significant decrease against major currencies due to escalating tensions in the region . The recent Hezbollah rocket attack that resulted in the tragic deaths of 12 children in Majdal Shams has sparked concerns of further conflict . The shekel is currently 1.59 % higher against the United States Dollar at NIS 3.739/$ and 1.50 % higher against the Euro at 4.053/.
Experts like Bank Leumi 's Kobby Levi believe that the recent events have led to a deterioration in local sentiment , causing uncertainty in the market . Levi predicts that the shekel will continue to depreciate in the coming days . The situation in the north has increased concerns , leading to volatility in the markets . Despite this , there is still hope for the shekel 's strength in the long term.
Yossi Fraiman , CEO of Prico Risk Management , Finance , and Investments , highlights that the market reaction will depend on Israel 's response to the situation . He emphasizes that the depreciation potential of the shekel is influenced by external factors such as foreign exchange conversions . Israeli exporters are expected to contribute to the supply of currency in the market , which could alleviate depreciation pressure on the shekel.
Over the weekend , Israeli forces launched air strikes on Hezbollah positions in Lebanon in response to a missile attack in Golan Heights that resulted in civilian casualties . As tensions escalate , concerns about a potential all - out war between Israel and Hezbollah have increased . The Israeli stock market and currency have been negatively impacted by these developments , with the Israeli shekel trading almost 2 % above Friday 's close.
Hezbollah has denied targeting the football pitch where the tragedy occurred , but Israel holds them responsible for the attack . The ongoing conflict has raised fears of further destabilization in the region . Despite Israel 's limited response so far , the situation remains tense . The USDILS pair has surged above the 3.6800 resistance zone , signaling potential further increases in the near term.
In conclusion , the Israeli new shekel faces challenges as geopolitical tensions rise in the region . The uncertainty surrounding the situation with Hezbollah in Lebanon and the impact on the foreign exchange market has led to fluctuations in the shekel 's value . As the situation unfolds , investors and market analysts will closely monitor developments to assess the implications on the Israeli economy.
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