Israeli Shekel Depreciates Amid Escalating Tensions and Market Volatility
The Israeli shekel is facing significant depreciation against the US dollar and euro due to escalating tensions following a tragic Hezbollah rocket attack in Majdal Shams. The shekel weakened by 1.59% against the dollar and 1.50% against the euro, prompting analysts to predict continued volatility in the currency market. Despite current challenges, experts maintain a long-term optimistic outlook for the shekel, citing strong trade data and a surplus in the current account.
Shekel’s Value Impacted by Military Operation in Rafah
The recent military operation in Rafah on the Gaza Strip-Egypt border has sparked concerns about the impact on the shekel’s value. As the IDF prepares for the assault, the shekel has already begun to weaken against major currencies. Analysts attribute the shekel’s decline to escalating security tensions, with market uncertainty heightened by the deadlock in negotiations between Israel and Hamas. Despite initial impacts, experts believe the shekel’s depreciation may be limited in the short term, but the conflict’s duration and intensity will play a crucial role in its future performance.