Israeli Shekel Extends Slump as Biggest Trade Partner Splinters
- Central bank keeps interest rates unchanged as growth slows
- Currency trades at lowest since March on a closing basis
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Israel’s shekel weakened as investors fretted about divisions in the country’s largest trading partner after the U.K. voted to leave the European Union.
The shekel dropped 0.3 percent to 3.8921 per dollar as of 4:38 p.m. in Tel Aviv, after depreciating the most in five years on Friday in the wake of the British referendum. The Bank of Israel on Monday left interest rates at a record low. While all 17 analysts in a Bloomberg survey forecast the decision, shekel forward-rate agreements dropped after Britain’s vote, signaling some traders are expecting a cut in the next three months.