Israel Shekel Weakens as Bonds Rise After Central Bank Rate Cut

Israel’s shekel weakened and bonds rose after the country’s central bank unexpectedly cut its base rate for a second straight month in an effort to boost an economy hit by slowing exports and the seven-week war in Gaza.

The shekel declined 1 percent to 3.5670 against the dollar at 5:27 p.m. in Tel Aviv, the lowest level since Nov. 25. The yield on the nation’s debt due March 2024 dropped eight basis points to 2.56 percent, a record low, while the TA-25 benchmark index closed 0.9 percent higher, the strongest advance in more than a month.