Israel’s stock market, shekel regain ground after president says judicial compromise imminent

After hitting a four-year low against the US dollar, the shekel surges, along with the Israeli stock market, amid Herzog’s announcement on judicial reform compromise.

By World Israel News Staff

A statement by Israeli President Isaac Herzog on Monday regarding the possibility of a compromise on the government’s plans to reform the country’s judiciary appears to have calmed investors, with the New Israeli Shekel rising significantly following his announcement.

Following weeks of mass protests and threats of civil disobedience, Herzog expressed optimism Monday, saying that progress has been made “behind the scenes” towards a judicial reform deal and that such a compromise is now “closer than ever.”

“We are closer than ever to the possibility of an agreed outline,” Herzog said during an emergency meeting with some 100 local politicians.

“There are agreements behind the scenes on most things,” he added. “Now it depends on our national leadership, the coalition and opposition, who will manage to rise to this great moment, who will understand the situation and the terrible alternative behind the door, and who will put the state and its citizens above everything.”

Immediately after Herzog’s announcement, the shekel surged against the U.S. dollar and the Euro, following weeks of declines.

The shekel had fallen to a four-year low against the dollar in late February and again in early March, trading at 3.67 for every USD, compared to 3.39 shekels per dollar in early February.

After opening at 3.67 shekels to the dollar, the dollar fell against the shekel after Herzog’s statement, falling to 3.59, before rising slightly to 3.61, for a total of a 1.6% gain.

The Euro also fell significantly Monday, dropping from 3.89 shekels to the euro to 3.81, before settling at 3.84.

The Tel Aviv Stock Exchange also rallied following the president’s announcement, with the TA-35 and TA-125 indexes each rising over one percent after 12 noon.

Last month, Bloomberg declared the New Israeli Shekel the “world’s biggest loser,” citing the currency’s 2% single-day decline. By month’s end, Israel’s currency was the third-worst performer for February, marking a 6% average loss in value, following Russia’s ruble and the Korean won.