The Israeli currency falls to 4-week low against the US dollar as tension with Lebanon increases
The Israeli shekel exchange rate fell to 3.743 against the US dollar amid fears of an Israeli escalation against the Lebanese Hezbollah.
In the middle of Monday’s session, the US dollar exchange rate reached 3.743 shekels, compared to 3.65 shekels at the beginning of today’s session, in the fastest decline of the Israeli currency in 3 months.
This comes as international airlines announced, on Monday, the suspension of their flights to Rafik Hariri Airport in the Lebanese capital, Beirut, for varying periods, to avoid an escalation between Israel and Hezbollah.
Israeli financial markets appeared to fear that tensions with Hezbollah would expand into a full-scale war, according to previous statements by Israeli government ministers, who called for pursuing this option.
Earlier, Channel 12 reported that Lufthansa and Austrian Airlines had cancelled their flights to Israel, without specifying a date for lifting travel restrictions.
On Monday, Lufthansa said in a statement that it had suspended its flights to Lebanon until August 5, the same date announced by the Swiss airline today.
While Air France announced the suspension of its flights to Lebanon on Monday and Tuesday, after the postponement of flights following the Lebanese Middle East Airlines, and the cancellation of flights scheduled for today from Germany, the Netherlands and Sweden.
