JERUSALEM, May 6 (Xinhua) -- The Bank of Israel (BoI) intervened on Monday in the currency market for the fourth time in a month and purchased 50 million U.S. dollars to enhance the value of dollar, Israeli media reported.
The intervention was made as the dollar's value has dropped increasingly in the past several months while the shekel has been strengthening. On Monday, a dollar is worth 3.567 shekels, marking a 0.6 percent rise from the 1:3.553 ratio on Friday.
The strengthening of the shekel is especially problematic as far as the competitiveness of the Israeli exporters' market is concerned.
Currency brokering company FXCM said that the shekel may weaken due to the growing tension between Israel, Syria and Lebanon following the alleged Israeli strikes on missile caches near Damascus.
"Investors don't like instability," an unnamed trader in the company told the Globes economic daily.
"If the tensions would persist, the shekel may take a blow and investors would prefer to invest in the safe dollar. On the other hand, if things calm down in the region, the market may be relieved and the shekel may resume its climb," he added.
On Sunday, the Israeli cabinet approved a bid promoted by Finance Minister Yair Lapid to raise the deficit target in the 2013-2014 budget.
The new target will stand on 4.65 percent of the Gross Domestic Product (GDP), an estimated sum of NIS 47 billion (13.2 billion dollars).