TASE slumps, dollar hits nine-year low

Market suffers losses as TA-25 drops 0.62%, TA-100 falls 0.61%. Dollar rates lose 0.457%, hitting lowest rate since October 1998 at NIS 3.9230
Ynet

The Tel Aviv Stock Exchange ended Wednesday's trade with losses: TA-25 dropped 0.62% to 1,227.11 points, TA-100 fell 0.61% to 1,176.94 points and the Tel Tech lost 1.63%, reaching 421.75 points.

Dollar rates fell 0.457%, hitting a nine-year low at NIS 3.9230. The euro added 0.727% and was set at NIS 5.7745. Wednesday's trade came to $484.44 million.

Dollar rates have fallen 7.2% since the beginning of 2007. The currency's previous low was in May, when it hit NIS 3.932; however, the dollar was able to bounce back, as it gained 10.4% in two months to reach NIS 4.342.

Since then the dollar has been decreasing in value, losing some 10% in three months and hitting a nine-year low.

The fluctuations in dollar rates carry a direct effect on the prices in Israel: some 40% of the monthly changes in the consumer price index are a direct result of the changing dollar rate.

The currency's slump caused world market changes as well: the European markets saw the euro trade up compared to the American currency, as €1 is currently trading around $1.4665. Both the British pound and the Canadian dollar have been echoing the European trend, as £1 is currently worth $2.10 and the Canadian dollar – $1.09.