Shekel Slides to Lowest Rate in Three Years against US Dollar
The shekel continued to slide against the US dollar on Tuesday, August 15, trading at NIS 3.763, its lowest rate since March 2020.
At one point, the shekel reached NIS 3.77 per dollar, before recovering slightly. The closing exchange rate was still a one percent rise over Monday’s rate.
The Israeli currency also slid against the euro, which traded at NIS 4.1144, a rise of 0.915% over the day before.
Monday saw the shekel fall against the dollar but then slow its descent after Fitch Ratings affirmed Israel’s A+ credit rating with a stable outlook, as it did in March but continued to warn of fallout if the government advances additional parts of its overhaul of the judiciary.
Analysts linked the recent fall in the shekel’s value to political turmoil over the judicial overhaul, an overall strengthening of the dollar against a number of foreign currencies, and that August is peak vacation season that sees many Israelis purchasing foreign currencies as they make trips abroad.
The shekel’s woes came as the Central Bureau of Statistics released figures showing the consumer price index rose by 0.3% in July, with the annual inflation rate dropping significantly from 4.2% in July to just 3.3%. (TOI / VFI News)
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