JERUSALEM, Sept. 7 (Xinhua) -- The Israeli shekel hit its lowest point against the U.S. dollar in more than three years on Thursday, as concerns about a constitutional crisis in Israel and the global economic outlook weighed on the currency.
According to the Bank of Israel, the shekel/dollar exchange rate stood at 3.848 shekels per dollar on Thursday, its weakest level since March 2020.
The currency has lost 12.4 percent of its value against the dollar since January 25, 2023, when the rate was 3.37 shekels per dollar.
Joseph Freiman, CEO of the Israeli financial Prico Group, said the weakening of shekel was due to a combination of factors, including the political uncertainty in Israel and the increase in demand for greenback as stock prices tanked in the United States.
Freiman said he expects the shekel to remain under pressure in the coming weeks, even with the possibility of reaching the 4-shekel-per-dollar level.
"The rapid devaluation of the shekel, at a time of high energy prices, is a catalyst for a new inflation," Freiman concluded. ■
