The shekel weakened 0.8% against the dollar on Thursday, pressured by a failed attack on a fuel depot outside Tel Aviv this morning, a suicide bombing in Rishon Letzion Wednesday night and the blaze that destroyed the Israeli embassy in Paris, dealers said. "The dollar rose because of the bombing last night and the uncertainty behind the fire in Paris," said Olivier Hakoune, head of the spot desk at Union Bank of Israel. "There was only one way for the dollar to go and that was up." The Bank of Israel set its official, or representative rate, at 4.9060 shekels to the dollar from 4.8650 on Wednesday, near its all time low of 4.9180 set two weeks ago. A suicide bomber killed two people in a public garden in Rishon Letzion on Wednesday night. Hours later suspected Palestinian militants tried to set ablaze a major Israeli fuel pumping depot near Tel Aviv, reportedly by an explosive device attached to a tanker. But there were no injuries. In Paris, Israeli Ambassador Elie Barnavi said a fire that gutted the embassy overnight was probably caused by an electrical fault, although he said he could not rule out arson. The shekel had advanced on Wednesday as parliament approved in an initial vote an NIS 13 billion package aimed at reining in a budget deficit swollen by falling tax revenues and higher defense spending after rejecting the package on Monday. The plan is intended to deal with an economic crisis that has deepened following Israel's recent six-week sweep for militants in the West Bank that increased defense spending. The shekel was also boosted on Wednesday by expectations that the central bank will raise its key lending rate, now at 4.6%, by about one percentage point on Monday to contain inflation, sparked by the weakening shekel. "Tomorrow could be another day but with all the reports that there might be serious attacks all over the world it's more convenient to be long dollars than short," Hakoune said. "If there's no security news in the next few days the dollar could retrace a bit ahead of interest rates on Monday and shekel/dollar options expiry on Tuesday. But any bomb could push the dollar forward." Hakoune said the shekel was expected to trade in a range of 4.88-4.93 per dollar in the next few days but added that the market was very uncertain. The basket of foreign currencies was set at 5.0224 shekels compared with 4.9867 on Wednesday. The shekel was set at 3.9256 shekels per 100 yen compared with 3.9097, against the euro at 4.5246 shekels against 4.5047 and against the pound at 7.1561 versus 7.1080. After the setting of the representative rate, the shekel was trading at 4.9002.