Israeli Shekel Slides, Volatility Jumps on Elusive Cease-Fire
- Currency posts one of world’s biggest losses against US dollar
- Stocks, bonds join selloff as Israel, Hamas trade blame
Displaced residents watch from a makeshift camp as shells from Israeli tanks hit an area in Khan Yunis on Aug. 18.
Photographer: Bashar Taleb/AFP/Getty ImagesThis article is for subscribers only.
Israel’s shekel slumped on Monday and the nation’s bond yields jumped to the highest since Aug. 1 as an elusive cease-fire and a renewed threat of escalation kept investors on edge.
The currency fell by as much as 1.2% to 3.7139 per US dollar for the second-worst performance among 150-or-so currencies tracked by Bloomberg. The shekel’s one-month implied volatility, derived from options prices, rose to the highest since October 2023. The 10-year local-bond yield increased for a second day, and the equity benchmark in Tel Aviv dropped the most in a week.