US Dollar Weakens Below 3 Shekels Amid Fed Inflation Concerns and Bond Buybacks

The US dollar weakened against the Israeli shekel on Tuesday evening, trading around 2.98 shekels after earlier approaching the 3-shekel threshold. Earlier in the day, the dollar nearly reached 2.997 shekels before reversing course. This movement followed the release of the July Federal Reserve meeting minutes, which revealed increased inflation concerns among Fed officials and support from several members for an interest rate hike at the last meeting. Despite the relatively hawkish tone of the minutes, the dollar declined globally. The US dollar index fell alongside a drop in US Treasury yields, which came after the US Treasury Department announced an expansion of long-term bond buyback operations. In Israel, the dollar traded between 2.977 and 2.98 shekels, moving away from the 3-shekel level that seemed imminent earlier in the day.