The Israeli shekel hit an over eight-year low at 3.99 per dollar as Israel’s IDF all set to invade the Gaza strip despite international appeals and warnings not to peruse the path of destruction.
The shekel depreciated over 3 percent against the US dollar since the Hamas surprise attack that killed 1400 Israeli citizens and over 2700 Palestinians in the wake of deadly air strikes.
Reuters quoting Andre Cilliers—currency risk strategist at TreasuryOne—said, “The Dollar is trading slightly off Friday's stronger closing levels as traders remain wary of further escalation in the Hamas/Israeli conflict. Israel is preparing for its ground offensive into Gaza while there have been clashes with Hezbollah on the Lebanon border,”
“US Treasury yields opened higher this morning, with the two-year yield back at 5.06%. The DXY index is at 106.50, with the dollar at 1.0528 against the euro and 1.2165 against the pound.”
He added that there is not much to look forward to on the US economic data front this week except tomorrow's retail sales number.
“However, we have Chinese Q3 GDP, retail sales, and industrial production numbers out later this week.”
The Israeli shekel, which has fallen to an eight-year low, is unlikely to significantly depreciate further, according to strategists at Goldman Sachs Group Inc.
