Shekel Strengthens Against Dollar Amid Weakening US Economic Data

The Israeli shekel has strengthened against the US dollar over the past month, rising by 2.5%, making it the world's strongest currency in this period.

The shekel's appreciation comes as investors reduce their expectations for further interest rate hikes by the Federal Reserve following weaker-than-expected economic data in the US.

Rafi Gozlan, chief economist at IBI, estimates that inflation will climb back towards the center of the target range in the last quarter of this year and reach 2.2% next year.