US Dollar Holds Near Peak Levels as Shekel Remains Stable Against Major Currencies

The US dollar and euro are trading relatively stable against the Israeli shekel this morning, with the dollar standing at 3.07 NIS and the euro at 3.44 NIS. Meanwhile, in global foreign exchange markets, the dollar continues to strengthen and remains near peak levels.

Global FX Trends and the Fed

Against the Japanese yen, the dollar weakened slightly by 0.2% to 157.815 yen following strong macroeconomic data from Japan. The country posted a current account surplus of 4.062 trillion yen (approx. $25.7 billion) in August, significantly outperforming economists' forecasts.

Simultaneously, the US dollar maintains its highest level in about a year and a half in Asian trading following the publication of the Federal Reserve (FOMC) meeting minutes. The protocol displayed a hawkish stance, emphasizing that inflation remains the primary risk to the US economy.

The Fed minutes from September reveal internal disagreements regarding the exact rationale for the rate decision, yet most committee members agree on the need for further monetary tightening and view inflation as a persistent threat.

Shekel Resilience and Capital Flows

The stability of the Israeli shekel relies on a massive and steady inflow of US dollars into Israel's economy, generating continuous demand for the local currency and offsetting security or political shocks. Capital sources include the massive revenues of the high-tech sector and defense exports, significant foreign investments, and institutional entities converting billions of dollars into shekels to hedge profits in overseas capital markets.

The US Dollar Index (DXY), measuring the greenback against a basket of six major currencies, holds stable at 102.23 following a 0.3% rise the previous day, remaining very close to peak levels established in April 2025.