Dollar Holds Steady Against Shekel Amid Global Currency Fluctuations

Global currency markets experienced moderate movements, with the Japanese Yen seeing a significant decline, ahead of the release of the September US jobs report. In Israel, the dollar remained largely unchanged, trading around 3.07 shekels.

Internationally, the dollar index against a basket of major currencies rose 0.1% to 101.6 points. The Euro showed little change above $1.13, while the British Pound dipped 0.1% to trade above $1.32. The dollar climbed 0.5% against the Japanese Yen, reaching 158.1 Yen.

These currency movements occur against a backdrop of rising US Treasury yields. The 10-year US Treasury yield increased by 5 basis points yesterday, nearing 5.30%, its highest level since 2007. The 30-year yield rose 4 basis points to 5.63%, a high not seen since 2002.

Minneapolis Federal Reserve President Neel Kashkari expressed concern over persistent inflation, despite recent data falling below economists' forecasts. "Inflation is still too high," Kashkari stated in a CNBC interview, noting that inflation is hovering around 3% annually, a rate that has persisted for over five years. He indicated that the latest Personal Consumption Expenditures (PCE) price index for August, the Fed's preferred inflation gauge, did not significantly alter his outlook. The core PCE, excluding volatile food and energy prices, rose 3% year-over-year, lower than anticipated.

Kashkari also commented on the resilience of the US economy, citing data on private consumption and gross domestic product. He recalled a past conversation with a union leader who described inflation as worse than a recession for union members, influencing his perspective on balancing price stability with employment.