Fighters from Islamist group Hamas killed 700 Israelis and abducted dozens more as they attacked Israeli towns on Saturday. In response, Israeli air strikes hit housing blocks, tunnels, a mosque and homes of Hamas officials in Gaza on Sunday.

The currency pair is not particularly active during Asian hours. The shekel was last down more than 3% against the dollar at 3.9581.

(Reporting by Ankur Banerjee in Singapore; Editing by Jacqueline Wong)