Dollar Dives Below 3 Shekels as Global Markets Surge

The US dollar has fallen below 3 shekels for the second time in recent months, reaching an exchange rate of around 2.96 shekels by the end of last week.

This decline comes despite factors that suggested support for the American currency recently, and experts point to three main reasons behind the drop.

The first reason is related to the rise of global stock market indices, particularly in the US, which has led to a decrease in the value of the dollar. This is because Israeli investments in the US market require hedging by purchasing shekels when their value increases, boosting the shekel's value.

The second reason is the declining likelihood of an interest rate hike on the dollar, following negative economic indicators from the US regarding growth rates, unemployment, and consumer indices.