Shekel Hits Two-Month Low Against US Dollar Amid Global Tightening

The Israeli shekel has weakened against the US dollar, reaching its lowest value in two months. The Bank of Israel set the representative rate at NIS 3.066/$, a 1.088% increase from yesterday's rate.

Several factors are contributing to this trend, including interest rate differentials with the US, rising bond yields, and Middle East tensions. Dr. Ilan Gildin, a partner at Karni Family Office, notes that the Federal Reserve's recent interest rate hike has widened the gap between Israeli and US interest rates.

Globally, the dollar is also strengthening, with the DXY index reaching a two-month high of 101 points. The Fed's continued tightening may further widen this gap, while tensions in the Middle East could shift pressure back to an appreciation of the shekel.