The shekel-dollar crossed the 4.00 level for the first time since October, 2007 as investors sold off shekels in reaction to the new government stimulus plan that may cause a large budget deficit. Traders bid up the dollar to close to four shekels Wednesday, but the rate closed around the 3.98 level. It now is trading at 3.999.
The shekel has lost 25 percent of its value in the past several months after the rate hit a 12-year low approaching 3.20. Two years ago, it traded above the 4.75 level, and its record high of five shekels to the dollar was recorded several years ago.