Jerusalem, Feb 22 (IANS): The value of Israel's currency shekel has fell to its lowest record against the US dollar in nearly three years, according to exchange rates issued by Israel's central bank.

The shekel's exchange rate against the dollar was set at 3.649 shekels per dollar, compared to the rate of 3.658 recorded on March 24, 2020.

On January 25, 2023, the exchange rate was set at 3.37 shekels per dollar. Since then, the shekel has been devalued by 7.6 per cent in less than a month, Xinhua news agency reported.

"The shekel's devaluation is probably related to the approval of the first part of the juridical reform in the Israeli parliament on Monday night," Sonia Gorodeisky, chief financial editor at Israel Hayom daily newspaper, told Xinhua.

"The reform and the political uncertainty surrounding it cloud the general sentiment in the market which prefers certainty and broad consensus," she added.

Another reason for the strengthening of the dollar is the expectation of continued interest rate hikes in the US to levels of 5.25 to 5.5 per cent, said Gorodeisky.