As hundreds of thousands of Israelis prepare to travel abroad for summer vacation at the end of the month, the cost of trips continues to soar due to the rising exchange rates of the dollar and euro.
Amid growing assessments that a hostage deal and a cease-fire in Gaza are becoming more distant, and against the backdrop of Israeli threats to intensify responses to rocket fire from Lebanon, the shekel weakened on Monday.
The dollar and euro both rose by 0.4%, with the dollar trading around 3.73 shekels and its official rate set at 3.732. The euro once again crossed the 4-shekel threshold, trading around this level after its official rate slightly dipped to 3.996.
In recent days, there have been significant fluctuations in foreign exchange rates due to shifting daily assessments regarding the prospects of a hostage deal and at least a temporary cessation of the war. Optimistic statements purportedly from senior Hamas officials contrasted with Hamas' rejection, which altered the proposal by U.S. President Joe Biden and Prime Minister Benjamin Netanyahu, leading Israel, with U.S. support, to reject the "revised framework."
Despite this, the stock market saw a rise of approximately 1.5% in various indices on Monday. This increase is attributed to a partial correction of recent weeks' declines and lower-than-expected inflation figures, which might prompt an interest rate cut in the coming months. However, most analysts dismiss the possibility of such a decision at the next meeting on July 8.