Currencies
Shekel Turns More Resilient as Israel-Hamas Ceasefire Holds
- Currency’s risk reversals at tightest levels since 2021
- Traders see truce relieving Israel economy, calming Mideast
Shoppers in the market in the Old city district of East Jerusalem.
Photographer: Kobi Wolf/BloombergThis article is for subscribers only.
Options traders are the least pessimistic in three years on Israel’s currency now that a ceasefire with Hamas has begun in Gaza.
The shekel’s three-month risk reversals have strengthened to the tightest level against the dollar since 2021. They still signal bearish bets on the currency are more expensive than bullish wagers, but the gap between them has narrowed. That suggests an improving outlook relative to most other currencies in a basket of expanded majors tracked by Bloomberg.