The dollar-shekel rate sunk to a new 10-year-low and is now trading at 3.579 shekels to the dollar. It has fallen almost continuously for the past several years, after reaching a high of 5.00 shekels to the dollar. The latest drop came following drastic cuts in interest rate by the American Federal Reserve Bank. The higher rate in Israel along with steady economic growth has encouraged foreign investors to sell dollars and buy shekels.
However, Histadrut leader Ofir Eini has threatened to call a strike if the Bank of Israel does not cut its rate. He said hundreds of people have been laid off by exporters, whose incomes have been cut because the dollars they receive are worth less in shekels. A Knesset committee also has announced it will discuss the issue.