Trading on the Tel Aviv Stock Exchange opened with declines, and the main indices were down about 1.2% to 1.7%. In currency trading, the U.S. dollar strengthened against the shekel and was trading above 2.99 shekels per dollar, approaching the 3-shekel level again.
Ronen Menachem, chief economist at Mizrahi Tefahot Bank, said the recent move reflects both a stronger dollar globally and a weaker shekel. He said the dollar gained 1.5% against the euro and 1.4% against the pound over the past week, while rising 2.7% against the shekel. “So this is a double story,” he said.
Menachem said the dollar’s jump is tied to rising expectations that U.S. interest rates will be raised by the end of the year, as well as worries about the impact on Israel of the agreement between the United States and Iran. He added that falling U.S. stock markets are also tending to weaken the shekel.
At the same time, he noted that the shekel is coming from a strong starting point after already touching 2.8 per dollar. In his view, nearing 3 shekels may prompt traders to reassess the next move and could lead to a pause around that level, though uncertainty remains high.
