The shekel-dollar exchange rate jumped 1.6% to NIS 4.842/$, and the shekel-euro rate to NIS 5.04/€.
Yesterday’s shekel depreciation is continuing today. The shekel fell 1.6% yesterday again the dollar to NIS 4.842/$, and against the euro to NIS 5.04/€.
Market sources attribute the depreciation to a number of key factors. The most important is the rumors circulating in the market that the US administration rejected Israel’s request for loan guarantees, and that the special Israeli delegation in the US is now meeting with senior US officials to try to change their mind.
At the same time, following the initial round of talks on aid, Prime Minister’s Bureau director Adv. Dov Weissglass told “Globes” that the US is likely to approve the guarantees sooner that usual. He noted that the US is aware of Israel’s economic plight, resulting from the security situation and the war against terrorism.
In trading rooms, the shekel decline was also attributed to the return of foreigners from their end-of-the-year vacation and financial scandal allegations involving Prime Minister Ariel Sharon and his sons Omri and Gilad. It was revealed that millionaire Cyril Keren transferred $1.5 million to Omri and Gilad Sharon’s joint account.
Published by Globes [online] - www.globes.co.il - on January 8, 2003