'Uncertainty Over Fischer's Replacement Adding to Forex Volatility'

That is according to Israeli financial newspaper, Calcalist. The dollar has gained 0.2 percent and is being traded at 3.69 shekels, while the euro is up by a similar amount and has risen to 4.8 shekels.

Analysts at FXCM said: "There is still uncertainty regarding the person who will replace Bank of Israel Governor Stanley Fischer who steps down at the end of June.

"And as we get closer to the day he leaves, the speculation will increase regarding his successor and that will increase the volatility in local forex trading.

The Cabinet on Sunday (June 2) unanimously approved a second four-year term for Eugene Kandel as head of the National Economic Council.

Two weeks ago ministers rejected approval of Kandel's flagship project – a mechanism for the clarification of disputes between regulators that would have enlarged the council's power.

The Cabinet also delayed discussion of another project that Kandel and his team have been working on for the past two years – establishing a ministerial committee on social-economic strategy.