Dollar Strengthens Sharply Against Shekel Following Election Results
Translated & summarized from Globes by baba
The Israeli shekel weakened against the dollar on Wednesday after initially strengthening on Election Day. The dollar surged over 1% as official results showed a significant lead for coalition parties, reversing Tuesday's gains. The currency market shift followed initial exit polls that had favored the opposition.
The story in 5 lines · by baba
- The dollar strengthened by over 1% against the Israeli shekel on Wednesday.
- The shekel had initially appreciated on Tuesday, Election Day, against foreign currencies.
- Official vote counts indicated a significant lead for coalition parties.
- Initial exit polls had suggested a slight advantage for the opposition parties.
- The Bank of Israel does not publish official exchange rates on election days.
The Israeli currency market experienced a significant shift on Wednesday, with the dollar strengthening against the shekel. On Tuesday, Election Day, the shekel had shown strength, appreciating against foreign currencies. The dollar weakened by approximately 1.8%, falling from around 3.08 shekels to a low of 3.02 shekels, while the euro declined to between 3.37 and 3.39 shekels.
This strengthening of the shekel on Tuesday occurred in the absence of an official exchange rate from the Bank of Israel, which does not publish rates on holidays or election days. Market participants attributed the shekel's strength to high voter turnout. Initial exit poll results, which suggested a slight advantage for the opposition, caused only a minor dollar uptick.
However, the trend reversed overnight and into Wednesday morning. As official vote counts progressed and indicated a significant lead for the coalition parties (57 seats based on 37% of votes counted), the dollar surged by over 1% in continuous trading. It erased all of Tuesday's losses and returned to trading around the 3.08 shekel level.
