Americans in Israel who still are holding their dollars were in the hole again Monday morning as the shekel-dollar rate dropped to 3.42, three agorot above the 11-year low reached last week. World markets are in a panic over the financial credit crisis facing the United States and over an anticipated drastic clash in lending rates to be announced Tuesday. The Bank of Israel is expected to continue to intervene in trading and buy dollars in order to keep the shekel from dropping further and diminishing exporters' profits.
The dollar was worth 4.20 shekels last year and 4.60 shekels two years ago, meaning that a thousand dollars that could fetch 4,600 shekels in 2006 is worth only 3,420 shekels today.
The shekel has been one of the world's strongest currencies against the dollar in the past several months, and it will gain a boost in international status next month when it joins 15 other currencies that are traded at international commercial banks.