Thursday, July 26, 2007

Israeli Shekel Declines on Concern Government Departing From Fiscal Policy

(Bloomberg) -- The Israeli shekel fell to an eight-
month low against the dollar after the government agreed to a 5
percent pay rise demand for state sector workers, stoking
speculation it's straying from fiscal policy.

The shekel posted its biggest decline in a month after the
finance ministry said it had struck ``a balance'' with the
Histadrut labor federation, which represents more than a quarter
of Israel's workers. The ministry has estimated that each 1
percent increase in wages costs the government 800 million
shekels ($187 million) a year.


Read more at Bloomberg Currencies News

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