As Israel widens Gaza ground offensive against Hamas, market expects fighting will be limited to the south; last week shekel hit weakest level in 11 years
The post Shekel strengthens as investor fears over war escalation to the north ease appeared first on The Times of Israel.

Central Bank sees economy slowing to 2.3% in 2023 from previous forecast of 3%, assuming that the war will be contained in the south on the Gaza border in the fourth quarter

Ratings agency warns of increased risk of a large-scale military conflict, if Hezbollah and Iran join the fighting, which could pull down Israel's A+ credit rating

Currency’s weakness comes as war rages, even after Bank of Israel announced plan to intervene in the foreign exchange market to try and contain sharp shekel moves

In week of Hamas onslaught, shekel drops to weakest level since early 2016, approaching NIS 4 per dollar; economist expects war to last at least two months

Central bank governor Amir Yaron, who was due to leave his post at the end of 2023, will remain in office to help steer the economy during war

Central bank says will operate in market in order to 'moderate volatility' in shekel exchange rate, will also provide dollar liquidity through SWAP mechanisms of up to $15 billion

Stocks also fall, as ex-finance minister Liberman blasts Netanyahu, Smotrich and Knesset finance panel chair for ignoring warnings of economic downturn

Tech Israel editor Sharon Wrobel on uncertainty over judicial overhaul leading to Israeli currency volatility; military correspondent Emanuel Fabian on Israeli efforts for Morocco

Local currency weakens to 3.85 against US dollar as hopes for a judicial compromise crush increasing odds for FX intervention; and as Moody's meets with PM in Israel