Dollar Hits Six-Month High Against Shekel Amid US Inflation Fears
Translated & summarized from Mako by baba
The US dollar climbed to a six-month peak against the Israeli shekel on Thursday, surpassing 3.10 shekels due to falling Wall Street markets. This decline was triggered by US inflation data showing a 3.7% rise in September, exceeding forecasts. Israeli institutional investors are selling dollar assets and buying shekels, further weakening the local currency. The euro also strengthened against the shekel.
The story in 5 lines · by baba
- The US dollar reached a six-month high against the Israeli shekel, trading above 3.10.
- US inflation rose to 3.7% in September, exceeding analyst expectations.
- Wall Street experienced declines following the release of the US inflation data.
- Israeli institutional investors are selling dollar assets and buying shekels.
- The euro also strengthened against the shekel, trading around 3.47.
The US dollar reached a six-month high against the Israeli shekel on Thursday, trading above 3.10 shekels for the first time since April. This surge follows declines on Wall Street, influenced by higher-than-expected US inflation figures for September.
The dollar's rise is linked to the performance of US stock markets, which fell after the release of the Consumer Price Index. The inflation rate in the US reached 3.7%, exceeding analyst expectations.
This market movement creates a situation for Israeli institutional investors, such as pension funds and insurance companies. They are required to sell dollar-denominated assets and purchase shekel-denominated assets to maintain their foreign exposure limits. This action increases demand for shekels, contributing to the local currency's weakening against the dollar.
The euro also saw a significant increase, trading around 3.47 shekels, approximately 0.8% higher than its previous official rate.
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