The Israeli shekel strengthened sharply Monday as the dollar fell 1.01% to a representative rate of 2.935 shekels, according to the Bank of Israel's daily fixing. The euro dropped 0.71% to 3.396 shekels. Markets are reacting to expectations of a US-Iran deal being signed this weekend, N12 reports.
The Israeli shekel recorded its sharpest one-day gain against the dollar in weeks on Monday, as markets priced in expectations of a US-Iran deal expected to be signed this weekend. The representative dollar rate fell 1.01% to 2.935 shekels, while the euro declined 0.71% to 3.396 shekels, according to the Bank of Israel's daily fixing, as reported by N12.
The move reverses a period of shekel weakness that followed the recent escalation with Iran. As The Zioneer has reported, the dollar had been climbing toward the psychological 3-shekel level in recent days — reaching 2.973 on June 10 and 2.965 on June 11 — as security tensions mounted. News of a potential deal has now driven a sharp reversal.
The reported deal, which has drawn commentary from Israeli analysts expressing concern over its terms, appears to be shifting market sentiment decisively. Unverified reports from N12 cite expectations of a signing by the end of the week. Further details on the deal's structure and timing remain pending.
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