"We remain of the view that the optimism is premature.
Netanyahu is only considering delaying the legislation, not
cancelling it. And he risks toppling his own government if he
caves to the protesters," said Eimear Daly, emerging markets
macro strategist at NatWest in London.
While the government says the overhaul is needed to rein in
activist judges and set a proper balance between the elected
government and the judiciary, opponents see it as an undermining
of legal checks and balances and a threat to Israel's democracy.
Netanyahu said in a televised address the delay was to reach
a broad consensus amid some of the biggest street protests in
the country's history.
Top officials at Israel's Finance Ministry last week also
warned that the plan could seriously harm the economy, according
to documents seen by Reuters, citing unease among foreign
investors and a shekel that has depreciated sharply to a
three-year low.
Tel Aviv's main 125 stock index ended the day 1.8%
higher, while the long end of the country's domestic curve yield
flattened, with the issue maturing in 2042 chalking up the
biggest price gains, 1.5 shekel. Meanwhile dollar-denominated international debt came under
pressure with the 2043 bond down 0.4 cent,
Tradeweb data showed.
(Reporting by Bansari Mayur Kamdar in Bengaluru and Karin
Strohecker in London; additional reporting by Rodrigo Campos in
New York and Marc Jones in London; editing by Sandra Maler and
Stephen Coates)
(Updates with closing prices, adds quote in paragraph 5)
By Bansari Mayur Kamdar and Karin Strohecker
March 27 (Reuters) - An early rally in Israel's currency
fizzled out on Monday after Prime Minister Benjamin Netanyahu
paused his signature plan to overhaul Israel's judiciary, which
had sparked mass protests across the country.
The Israeli shekel closed 0.2% stronger against the
dollar after strengthening as much as 1.6% earlier in the day on
hopes that Netanyahu would halt the move as protests flared
overnight following his dismissal of Defence Minister Yoav
Gallant for opposing the plans.
It was the shekel's most volatile day in three years against
the dollar, after earlier having fallen as much as 2.2%. The
currency was little changed at the start of the Tuesday session.
More volatility could follow as the issue was still far from
being resolved, according to analysts.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.