Israeli Shekel Weakens Slightly as Dollar Rises to 3.15
Translated & summarized from Calcalist by baba
The Israeli shekel weakened slightly against the dollar, which rose to 3.15 shekels, and the euro also increased. Global markets are watching US midterm elections and anticipating a Bank of England interest rate hike. Meanwhile, the Reserve Bank of Australia raised its interest rate to 4.85% and projected inflation to remain high until late 2027.
The story in 5 lines · by baba
- The Israeli shekel weakened against the dollar, which reached 3.15 shekels.
- The euro also rose against the shekel, trading above 3.52 shekels.
- Markets await US midterm election results, with Democrats favored to control the Senate.
- The Bank of England is expected to raise interest rates on Thursday.
- Australia's central bank increased its interest rate to 4.85% to combat inflation.
The Israeli shekel experienced a minor depreciation against the US dollar, which rose to approximately 3.15 shekels. The euro also saw a similar increase, trading above 3.52 shekels. These movements occurred amidst slight fluctuations in global currency markets, while the US dollar index, tracking major currencies, remained stable. The euro held steady against the dollar, just below $1.12, and the British pound also showed stability around $1.34, ahead of the Bank of England's interest rate decision on Thursday. Analysts anticipate the Bank of England will raise its interest rate for the first time since August 2023, from 3.75% to 4%.
Attention is also focused on the US midterm elections taking place today, with market forecasts suggesting a nearly 75% probability of Democrats gaining control of the Senate. A Democratic victory in either the Senate or the House of Representatives could impact congressional oversight on critical sectors like security, artificial intelligence, and healthcare. Following the elections, some market calm is expected, according to Ryan Detrick, a CNBC commentator and chief market strategist at Carson Group. He noted that while markets tend to perform well after elections, a significant sweep by one party could cause stock market volatility due to concentrated spending and power.
In other economic news, the Reserve Bank of Australia, led by Governor Michele Bullock, raised its interest rate by 25 basis points to 4.85%, the highest level since November 2008. This marks the fifth rate hike this year, aimed at combating persistent inflation, which stood at 4.3% annually in September. The bank's forecast now indicates inflation will remain elevated through much of 2027, with a return to the 2%-3% target not expected until late 2027, three quarters later than previously projected.
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