Spurred by escalation, dips on New York's NASDAQ, and recent comments by Bank of Israel Governor David Klein, the shekel again lost strength to the U.S. dollar Wednesday, reaching what analysts have called a "psychological barrier" at a level of NIS 4.60 to the dollar.
Some currency traders have predicted that the shekel could level off at the NIS 4.60 level. But others noted that since Klein indicated at the beginning of this week that he felt comfortable with a dollar trading at NIS 5, the weakening of the Israeli currency has continued at an accelerated pace.
This week's escalation in Israeli-Palestinian violence and declines on the NASDAQ have also contributed to the shekel's weakness.
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