JERUSALEM, Jan. 27 (Xinhua) -- The Israeli currency shekel on Tuesday climbed to its strongest level against the U.S. dollar in over four years, trading at 3.104 shekels per dollar, according to official rates issued by the country's central bank.
Market analysts attributed the latest strengthening primarily to geopolitical developments, citing the return on Monday of the body of the last Israeli hostage held in Gaza, which they said eased political and security uncertainty to some extent, supporting demand for the shekel.
They also pointed to ongoing economic factors underpinning the currency's gains, including positive trends in the Israeli stock market that have increased the supply of dollars in the local market. In addition, Israeli exporters have been converting their dollar revenues into shekels to meet payroll and tax obligations, further supporting the local currency.
In October 2023, the Israeli currency weakened to 4.081 per dollar following the Hamas attack on southern Israel and the outbreak of Israel's multi-front conflict. Since then, the shekel has appreciated by 31.5 percent against the dollar. ■
