Dollar Weakens Against Shekel Amid Global Tensions and Rate Decision Watch
Translated & summarized from Calcalist by baba
The dollar declined against the Israeli shekel, trading at 3.10 shekels, as global markets reacted to riots in France and awaited upcoming interest rate decisions from the US Federal Reserve and the European Central Bank. The euro weakened due to the French unrest, while the pound strengthened against the shekel. Investors are closely watching inflation data and central bank signals ahead of key rate announcements.
The story in 6 lines · by baba
- The dollar weakened to 3.10 shekels against the Israeli currency.
- Global markets are influenced by riots in France and upcoming central bank rate decisions.
- The euro is under pressure due to violent protests against the cost of living in France.
- Investors anticipate interest rate decisions from the US Federal Reserve and the European Central Bank next week.
- The pound strengthened by 0.5% against the shekel, reaching 4.132.
- The dollar index, measuring its value against major currencies, remained stable.
The dollar opened the trading week with a decline against the Israeli shekel, while the euro and pound strengthened. Global markets are reacting to tensions in France and anticipation of interest rate decisions from the US and the Eurozone next week, with investors assessing whether inflation pressures will necessitate further rate hikes.
Locally, the dollar weakened by 0.4% to trade at 3.100 shekels. The euro gained 0.2% to 3.483 shekels, and the pound climbed 0.5% to 4.132 shekels. Internationally, the euro fell 0.1% against the dollar to 1.123, the pound held steady at 1.333 dollars, and the dollar strengthened by 0.1% against the yen to 158.09.
The euro is under pressure due to protests against the cost of living in France, which escalated to violence over the weekend. President Emmanuel Macron condemned the events in a national address. Kiran Williams, Head of FX Asia at Intouch Capital Markets, noted that the weekend riots are impacting the euro primarily through French bonds, not directly.
In the US, investors are weighing high inflation data against cautious signals from Federal Reserve officials. Last week, the dollar weakened as expectations for an October rate hike diminished following statements indicating no urgency for further tightening. Concerns over artificial intelligence stocks also affected trading. Market indicators suggest an 87.3% probability that the Fed will leave interest rates unchanged at its October 28th decision. The European Central Bank is scheduled to announce its decision the following day.
Williams anticipates that this week will be characterized by preparation for the Fed and ECB decisions, leading investors to maintain limited positions. He added that the risk from news out of France is expected to remain high.
Mentioned
