Dollar and Euro Rise Against Shekel Amid Recent Market Shifts

The US dollar and euro have both strengthened moderately against the Israeli shekel this morning, although the dollar has weakened significantly over the past month. Over the last year, the dollar depreciated by 12.63% and the euro by 12.42% against the shekel, with the recent divergence mainly due to the euro's global strengthening in recent weeks.

Financial analyst Oren Furia highlights that developments in the US bond market are influencing currency movements. The US Treasury's announcement to double its long-term government bond purchase program has supported bond prices and caused yields to fall. Specifically, the 30-year US Treasury yield dropped from 5.33% to approximately 5.19%, reflecting a rapid price increase of over 4% for these bonds.

This decline in long-term yields has also bolstered stock markets, which had shown signs of correction in recent days. Furia notes that this intervention has so far halted the market correction, but it remains uncertain whether this is a temporary pause or the start of a longer-term market stabilization. The ongoing strengthening of the euro and the bond market dynamics continue to shape the direction of currency exchange rates and financial markets.