After a relatively moderate speech by Hezbollah Secretary-General Hassan Nasrallah last Friday, the dollar crashed against the shekel and traded at NIS 3.92. This represents a decrease of 1.5% from its representative price, which was set at NIS 3.9880 that day. The euro fell to NIS 4.20.
The dollar weakened against the shekel, illustration, photo: GettyImages
In Israel, they waited for Nasrallah to come out to understand whether he intended to start a full-scale war against Israel. In his speech, he said, among other things, that "the decision to launch an attack against Israel was 100% Palestinian," and threatened that if Israel "launches a preemptive attack in Lebanon, it will make the biggest mistake in its history."
Apart from Nasrallah's speech, it should be noted that the dollar weakened against the world's leading currencies, against the background of the price increases on the US stock exchange.
According to Ronen Menachem, chief market economist at Mizrahi Tefahot, "We saw a sharp strengthening of the shekel as a result of a combination of two factors. First, the weakening of the dollar worldwide, as a result of the relatively lukewarm US employment report for October, which led to markets assessing that the interest rate increases had come to an end.
Ronen Menachem, Photo: Mizrahi Tefahot
"Second, the experts interpreted Hassan Nasrallah's speech as lukewarm. Since we know that a large part of the shekel's depreciation stemmed from concerns about the development of a regional war, Nasrallah's statement supported the shekel."
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