Shekel weakens sharply against euro

The shekel weakened considerably against both the dollar and euro in early trading on the foreign exchange market Tuesday. At 3.8288 NIS/$, The shekel-dollar rate is up 0.62% in comparison with yesterday's representative rate, while the shekel-euro rate is up 0.97% at 5.0070 NIS/€.
On world currency markets, the dollar is slightly weaker against the other major currencies, at $1.307 against the euro, and $1.6101 against the pound sterling.
In Europe, the result of the weekly finance ministers meeting is awaited. Expectations are gaining ground that Greece will meet the demands of the EU, and will the second tranche of the rescue package, worth €44 billion.
In the US yesterday, the Republicans in Congress submitted their counter-proposals to US President Obama's proposals for dealing with the so-called fiscal cliff. They propose raising taxes by $800 billion, whereas the president's proposal calls for raising tax revenue by $1.6 trillion. The wide gap between the two sides deepens the fear that they might not manage to reach agreement by the end of the month.