The shekel softened 0.4% in early trade to hit 3.9544 to the dollar, extending losses again after Monday's more than 2.5% tumble, which was the biggest one-day move since March 2020. The currency has weakened 11% so far in 2023.
The weekend attack and retaliatory strikes by Israel have claimed more than 1,500 lives, raising fears the region could face a prolonged wave of conflict and violence.
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