Shekel tumbles as Gaza conflict flares

Atrade believes the Gaza military operation could see the shekel-dollar exchange rate reaching NIS 4/$ this week.

The shekel was sharply down against the dollar and the euro in morning inter-bank trading after Israel launched Operation Pillar of Defense in Gaza and southern Israel was hit by a barrage of rockets. The shekel-dollar exchange rate is up 1.46%, compared with yesterday's representative rate, to NIS 3.975/$, and the shekel-euro exchange rate is up 1.49% to NIS 5.064/€.

Atrade believes that the military operation in Gaza could see the shekel dollar exchange rate reaching the NIS 4/$ threshold this week.

The Tel Aviv Stock Exchange, which fell sharply in late trading yesterday, after staying in positive territory during most of the session, after the IDF confirmed that the Air Force killed Hamas's military commander Ahmed Jaabari, is expected to fall further today. Market falls will be exacerbated by falls in the New York markets yesterday.

After the market closes the Central Bureau of Statistics will announce how much the Consumer Price Index (CPI) rose in October. Analysts expect the CPI to have risen between 0.1% and 0.5% in October.

Published by Globes [online], Israel business news - www.globes-online.com - on November 15, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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