US Dollar Weakens to Around 3 Shekels Amid Global Bond Purchase Concerns

The foreign exchange market showed mixed movements on Friday morning, with the US dollar weakening against the Israeli shekel while the euro and British pound strengthened. The dollar traded at approximately 2.997 shekels, down 0.3%, whereas the euro rose 0.2% to 3.511 shekels and the pound increased 0.3% to 4.097 shekels. Internationally, the dollar also lost ground against major currencies, declining 0.2% on the dollar index to 98.62 points. The euro strengthened 0.2% against the dollar to 1.170, and the pound rose 0.2% to 1.365 dollars. The dollar fell 0.1% against the Japanese yen, trading at 158.82 yen.

These movements follow the US Treasury's announcement this week to double its repurchase of long-term US bonds from September through November 4. This measure aims to improve market liquidity and ease pressure on long-term bonds, which have recently faced sharp sell-offs. However, concerns have emerged in the forex market that this effort to cap long-term yields could reduce the attractiveness of US bonds to foreign investors, thereby putting additional downward pressure on the dollar.

The evolving bond purchase strategy and its impact on currency valuations remain key factors for traders and investors in the coming weeks.