Slight gains for the shekel ahead of inflation data release in Israel; dollar below 2.96 shekels

The foreign exchange market is seeing further strengthening of the shekel against major currencies this morning (Friday), as investors continue to digest the latest inflation data from the US. At the same time, the local market is awaiting the publication of inflation data in Israel, which may influence expectations for the Bank of Israel's future interest rate policy.

In the local market: the dollar weakened by 0.5% and is trading at 2.957 shekels, the euro is losing 0.2% to 3.412 shekels, and the pound is down by 0.3% to 3.992 shekels. In global markets: the euro is strengthening by 0.1% against the dollar to 1.154, the pound is rising by 0.1% to 1.350 dollars, and the dollar is weakening by 0.2% against the yen to 159.20 yen. The Dollar Index, which measures the currency's value against a basket of leading currencies, is down by 0.1% and is trading at 99.73 points.

At 14:00, inflation data for July in Israel will be released. The market expects the Consumer Price Index to show monthly growth of 0.4% after stagnation in June, and an annual increase of 1.6% — similar to that recorded in the previous month.

Markets are also continuing to monitor geopolitical developments. US Treasury Secretary Scott Bessent threatened yesterday to subject Iran to economic isolation "the likes of which the world has never seen," and added that new measures are expected to be announced next week.

"It will be a combination of economic isolation, the likes of which the world has never seen," Bessent told Newsmax, adding that "the continued blockade in the Strait of Hormuz will prevent anything from entering or leaving Iranian ports." "Follow the developments, more announcements are expected next week," he said.

Bessent described a two-pronged policy that would include financial pressure alongside a physical blockade of the ports. US Vice President J.D. Vance said earlier that the US's top priority in the war with Iran is to lower oil and fuel prices for Americans, while preventing Tehran from obtaining nuclear weapons is currently in second place.