The Israeli shekel lost ground against the US dollar in early New York trading on Wednesday. The shekel slipped to a 6-week low of 3.9528 against the greenback by 8:35 am ET. On the downside, the shekel may find support near the 4.0 level. The dollar-shekel pair that was worth 3.886 at Tuesday's close is currently trading at 3.9227.
Investors continued to weigh as Standard & Poor's reaffirmed its "stable" outlook on Israel's credit rating yesterday, saying the 22-day Gaza conflict would only have a short-term impact on the economy. S&P, however, noted that the conflict is expected to widen the country's fiscal deficit this year and next year. S&P has an A/A-1 rating on Israel's foreign currency debt and AA-/A-1+ on its local debt. The S&P also said that Israel's fiscal deficit would expand to 6% of gross domestic product in 2009 and 3% in 2010.
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Published: 2009-01-21 02:00:00
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