Dollar Hits Six-Month High Against Shekel Amid US Inflation Fears
Translated & summarized from N12 by baba
The US dollar surged to a six-month high against the Israeli shekel on Thursday, surpassing 3.10 shekels for the first time since April. This strengthening is linked to falling US stock markets, triggered by higher-than-expected inflation data showing a 3.7% CPI increase. Israeli institutional investors are selling dollar assets and buying shekels to meet exposure requirements, further weakening the local currency.
The story in 5 lines · by baba
- The US dollar reached a six-month high against the Israeli shekel, trading above 3.10.
- This is the first time the dollar has crossed the 3.10 shekel mark since April.
- US inflation data for September showed a 3.7% rise, exceeding analyst expectations.
- Declines in Wall Street trading influenced the dollar's rise against the shekel.
- Israeli institutional investors are selling dollar assets and buying shekels.
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. The euro also strengthened, trading around 3.47 shekels. This rise in foreign currency values is attributed to declines in Wall Street trading, which were influenced by higher-than-expected US inflation data for September. The US Consumer Price Index (CPI) rose by 3.7%, exceeding analyst expectations.
As stock markets in the US fell, Israeli institutional investors, including pension funds and insurance companies, were compelled to sell dollar-denominated assets and purchase shekel-denominated assets to maintain their foreign exposure limits. This action, selling dollars and buying shekels, contributes to the weakening of the local currency and the strengthening of the US dollar.
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