Bank of Israel Imposes Currency Trading Restrictions Ahead of Holiday

The Bank of Israel will implement significant restrictions on foreign currency trading starting Friday, the eve of the Rosh Hashanah holiday. These measures include a prohibition on opening and closing dollar deposits and executing transfers. As no new official exchange rate will be set on Friday, the rates finalized on Thursday will remain in effect until trading resumes on Monday. This move comes amidst relative calm in the local currency market, contrasting with heightened global market alertness.

Globally, investors are anticipating key macroeconomic announcements. The European Central Bank (ECB) is expected to announce an interest rate hike today, raising its deposit rate from 2.25% to 2.50%. This follows a similar historic increase in June and comes in response to soaring inflation in Europe, which reached 3.3% in August, largely driven by a 14.3% surge in energy prices.

Markets are also awaiting U.S. inflation data scheduled for release on Friday. In the meantime, the dollar index has seen a slight decrease of 0.1% against a basket of currencies, trading at 98.7 points. The Euro is holding steady above $1.15, and the British Pound has strengthened slightly, crossing the $1.35 mark.