The weakening Israeli shekel took a further dive on Wednesday, dropping to 3.87 against the US dollar, its lowest rate in seven years.
The dollar had been trading at NIS 3.81 on Sunday. The new rate marked a 1.5 percent jump since the beginning of the week.
Tel Aviv stock index prices also fell, with the TA 125 weakening by 1.5% and the TA 35 weakening 1.3%, while the Tel Aviv-Real Estate and Tel Aviv-Technology industry indexes fell by 2%.
The shekel’s slip against foreign currencies over the past year has already been felt in the price of imported goods such as cars and electrical appliances.
Analysts say the shekel’s poor showing is to a large extent a result of concerns over the ongoing political turmoil surrounding the government’s planned overhaul of the judiciary, which has been met with months of mass protests.
The currency’s devaluation increases inflation and could lead to further interest rate hikes by the central bank.
