Israeli Shekel Weakens Slightly Amid Iran Tensions and Global Market Moves

The Israeli shekel experienced a slight decline against the dollar and euro following yesterday's sharp drops, with the dollar rising 0.2% to trade above 3.04 shekels and the euro also up 0.2% to above 3.47 shekels. This movement comes amid escalating security tensions in Iran, which have driven oil prices higher. Globally, the dollar index remained steady at 101.1 points, while the euro and pound held stable against the dollar at above 1.14 and 1.33 respectively.

In the United States, investors are awaiting the release of the Federal Reserve's June 17 meeting minutes, expected later today. The Fed, under new Chair Kevin Warsh, kept interest rates steady at 3.75% during that meeting, though markets anticipate at least one rate hike before year-end. Meanwhile, the US canceled concessions previously granted to Iran and launched military strikes overnight in response to Iranian attacks on three commercial vessels passing through the Strait of Hormuz. CENTCOM confirmed it initiated a series of powerful strikes targeting Iran.

Separately, the Reserve Bank of New Zealand raised its interest rate by 25 basis points to 2.5% on Wednesday, marking its first hike in three years due to ongoing inflation concerns. Inflation in New Zealand was 3.1% in Q1, slightly above the central bank's 1%-3% target. Although Q2 data is pending, it is expected to reflect rising oil prices. The last rate increase before this was in May 2023, and since August 2024, the bank has been reducing rates, with the most recent cut in November 2025 lowering the rate to 2.25%.