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Shekel On Softer Footing, Moody's Delegation To Touch Down In Israel This Week

ILS

Yesterday spot USD/ILS clawed back losses from the beginning of the week as hopes for a compromise over Israel's judicial overhaul faded while crude oil prices increased on the back of Saudi & Russian output cuts. The rate has crept higher still and last deals at 3.8109, up 107 pips on the session, with bulls looking for a swing above Sep 4 high of 3.8422.

  • Some commentators have suggested that Netanyahu might be hoping that renewed talks with the opposition could encourage the High Court to postpone imminent hearings on key judicial reforms. As a reminder, the government is preparing for a triple showdown in the top court this month:
    • On September 12 the court will hear petitions against the government's "reasonableness" bill, perhaps the most contentious piece of legislation in the judicial overhaul.
    • On September 19, the Court will hear petitions demanding Justice Minister Yariv Levin to convene the Judicial Selection Committee which appoints judges. The Court said today that it was considering an injunction against the government to convene the panel ahead of the hearing.
    • On September 28, the Court will hear a case on the coalition's recusal law, which shields the Prime Minister from being removed from office by the High Court or the Attorney General.
  • Globes reported that a "delegation from Moody's will land in Israel this week to gather information for the international rating agency's latest report on Israel due for publication on October 13". The newspaper points to a "crisis of confidence between the government and the rating agencies" as PM Netanyahu's administration reneged on its pledge not to take unilateral steps on judicial reforms.

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