2023-12-11 12:43:00
Dollar Exchange Rate Against Shekel Decreases, Largest Monthly Drop Ever
The dollar exchange rate against the shekel has experienced a significant decrease, trading at lower levels than before the war. This drop in November marks the largest monthly drop ever, despite the Bank of Israel selling only $340 million during this month, compared to over $8 billion in October.
The decrease in the dollar exchange rate can be attributed to several factors, including the estimation that the war will not last much longer. Conflicting messages from the field have also contributed to this trend. While political sources have indicated that the entire year of 2024 will be a year of combat, sources in the IDF state that they recognize “signs of breaking” in Hamas. Other factors affecting the exchange rate include interest rates in Israel and the US, as well as the current activity of foreign exchange traders.
In contrast, government bonds continue to fall, reflecting fear in the market of the continuation and escalation of the fighting.
Additionally, Haikon Systems has reported a $3.3 million order out of an $8 million letter of intent, indicating a positive outlook for the company.
Amidst these developments, investment managers are divided on whether it is the right time to invest in Israeli stocks. While some believe that the local market will rise, others warn of the risks associated with investing in Israeli stocks in the midst of a war.
The conflicting opinions indicate that while the local stock market is cheap compared to global prices, a fixed risk premium has been added to Israel. Each sector and share must be individually evaluated to assess the risks and potential returns.
Investors are advised to consider diversifying their portfolios to include investments with limited downside risk, such as security stocks and food retail stocks, which tend to remain stable or even increase during difficult economic periods and wars.
Ultimately, while opinions on the market may differ, a balanced approach to investing and careful consideration of risk is essential for investors to navigate the current market conditions.
The data is displayed with a delay of about 15 minutes, providing investors with up-to-date information to make informed decisions.
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