The Israeli shekel weakens amid geopolitical caution.

Arabian Sea - Exclusive

The Israeli shekel's price declined against major currencies this week, due to escalating regional tensions between Israel and Iran. The currency saw a sharp decline of about 1.9% against the US dollar on Friday, as investors turned to safe-haven assets such as the US dollar and gold, following Israeli strikes on Iranian facilities and Tehran's response by launching more than 150 missiles and drones. In the regional market, the shekel recorded a drop of up to 3.5% during early trading on Friday, in parallel with the decline in stock and bond markets in the Gulf countries, and the decline in the Abu Dhabi and Dubai market indices. Analysis: * The mutual military actions between Israel and Iran have prompted investors to prefer safe-haven currencies and commodities: the dollar approached its highest levels after gains ranging between 0.5 and 0.8%, while gold and oil rose (oil by about 7-8%). * Under these pressures, the shekel tends to fall, with its increased susceptibility to geopolitical instability factors and its limited ability to retain its value in the event of security shocks.