Israeli Shekel Slumps 4% Against Dollar as 12% Rally Eases Pressure on Central Bank

3 articles · Updated · Bloomberg · Jun 8

A 4% drop against the dollar this month has made the shekel the worst performer among more than 140 currencies tracked by Bloomberg, a sharp reversal from its recent surge.
That slide follows a nearly 12% gain over the previous two months, when the shekel reached a three-decade high and became the world’s best-performing currency.
The reversal eases pressure on the Bank of Israel, which had stepped into foreign-exchange markets for the first time in five years to buy dollars after the rally hurt exporters.
The central bank had also signaled that more monetary easing could be ahead, with the shekel’s abrupt swing underscoring how quickly policy pressure has shifted.

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