The shekel exchange rate declined against the dollar and the euro at the beginning of the week’s trading (Shutterstock)
The exchange rate of the Israeli shekel fell against the dollar and the euro at the beginning of the week’s trading after Moody’s credit rating agency decided to downgrade Israel’s rating.
According to Bank of Israel data, today, Monday, the shekel exchange rate fell in early trading to 3.69 shekels to the dollar, down from the close of Friday’s session of 3.66 shekels.
Last Friday, Moody's said it lowered the government of Israel's foreign and local currency issuer ratings to "A2" from "A1", and also lowered Israel's unsecured foreign and local currency ratings to "A2" from "A2". A1” amid negative expectations.
The reduction decision, Israel's first in more than 50 years, comes in the wake of a war launched by Tel Aviv in the Gaza Strip since last October 7, tension in the north with Hezbollah, and Houthi attacks in the southern Red Sea on Israeli, American and British ships.
The shekel also fell against the euro to 3.99 shekels, down from the close of the Friday session of 3.96 shekels, amid expectations that the impact of the classification on exchange rates will end, and that military developments will remain a major driver of prices during the coming period.
On the agenda of the exchange market in Israel this week will be the inflation data for last January, which will be published next Thursday, which is the last price index that will be published before the next Bank of Israel decision on the interest rate on February 26.
Source: Anadolu Agency