Israeli shekel hits record low against USD in over 11 years

Jerusalem, Oct 27

Amid the continued Israel-Hamas conflict, the Israeli shekel fell to a record low against the US dollar in more than 11 years, according to official exchange rates issued by the country's central bank.

The shekel continued to weaken amid the raging conflict, despite the bank's plan, announced on October 9, to sell up to $30 billion to stabilise the Israeli currency, reports Xinhua news agency.

The shekel's new representative rate against the dollar was set at 4.079 shekels per dollar, compared to 4.084 recorded on July 27, 2012.

Since January 25 this year when the exchange rate stood at 3.37 shekels per dollar, the currency experienced a 17.4-per cent depreciation against the greenback.

Yossi Frank, CEO of Energy Finance, a leading Israeli financial risk management company, told Xinhua that despite the plan, the central bank has since acted in a very minor and bland manner, and market participants have responded accordingly.

He added that the continued weakening of the shekel is mainly due to a possible "significant involvement" of the Lebanese militant group Hezbollah in the conflict, which would temporarily worsen the security situation.