Despite rampant divestments and impending economic boycotts adding to the problems of the conflicted Israel, the currency stayed strong. After a move by the Bank of Israel to stem the currency's rally, the Israel shekel is weakening after experiencing high levels for two entire months.
The shekel decreased to 3.5815 against the dollar, equal to a 0.6% drop. Eytan Admoni, Bank of Jerusalem's head of international department said that Bank of Israel purchased US$35 million dollars.
The central bank's spokesperson Yossi Saadon did not want to speak on the matter.
"Local and foreign investors are continuing to find the shekel attractive, prompting the central bank to intervene in an effort to moderate the pace of the currency's appreciation," said Admoni. He continued to say that the Bank of Israel will find it difficult to turn the shekel's trajectory.
"It will be hard for the central bank to reverse the trend of the shekel's gains as the country's interest-rate differential with its trading partners lures inflows," the BoJ head said.
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