Dollar weakens on global markets but slightly strengthens in Israel to 2.98 shekels

The dollar is moderately declining on global markets on August 20 after a sharp drop the day before, but is slightly strengthening against the shekel — by about 0.1%, to 2.98 shekels. The euro is rising to 3.49 shekels. The dollar index fell to its lowest since May. The reason is the US Treasury's decision to double the buyback of long-term government bonds due to falling demand.

The dollar continues to moderately decline on global currency markets on August 20 after a sharp drop the day before, but is slightly strengthening against the shekel. In Israel, the dollar is gaining about 0.1% and trading at approximately 2.98 shekels. The euro is rising by about 0.5% to 3.49 shekels. On global markets, the dollar index, which reflects its exchange rate against a basket of major currencies, is falling by 0.2% to 98.6 points. The euro is strengthening by about 0.2% to $1.17, and the British pound is gaining 0.3% and trading above $1.36. In Japan, the dollar is slightly rising — by about 0.1% to 158.3 yen. The movement was driven in part by the US Treasury's decision to double the volume of buybacks of long-term US government bonds from September to November 4. This step was a response to a sharp decline in demand for US government bonds since June, which led to a sharp rise in their yields. Market analyst Tony Sycamore of IG explained that the US Treasury is effectively removing some long-term bonds from the market while continuing to increase the issuance of short-term Treasury bills. Brian Jacobsen, chief economic strategist at Annex Wealth Management, believes that the US Treasury's actions provide only temporary relief and demonstrate how much monetary policy now depends on the fiscal situation. Ronen Menachem, chief market economist at Mizrahi-Tefahot Bank, emphasized that the factors that initially led to the rise in market interest rates still persist — including concerns about inflation, the large US federal budget deficit, and the sale of US government bonds by other countries.