The prime minister’s speech softened the sharp increases in the shekel. Netanyahu said in a statement he gave regarding the legal revolution that the legislation will not stop. He even added that “the change in the appointment of the judges will come up next week.” The dollar rose back above NIS 3.60, after earlier falling below NIS 3.55. The euro, which earlier fell below NIS 3.87, rises back above NIS 3.90.
The leading currencies fell earlier against the shekel after a report that Defense Minister Galant called on Netanyahu to stop the legislation and then the Prime Minister announced that he would hold a press conference at 8:00 PM where he would make an “important statement”. Therefore, there was a sharp increase in the Tel Aviv Stock Exchange at the same time as a jump in the shekel against the main currencies.
The Prime Minister’s wife Sara Netanyahu also issued an unusual message earlier: “Calls to calm spirits and work for a broad consensus among the people.” This after during the day of paralysis Ayalon was blocked for more than two and a half hours, and 87 protesters were arrested or detained throughout the country.
The dollar registers declines against the leading currencies, after the US central bank signaled yesterday that its round of interest rate hikes is coming to an end. Yesterday, the Federal Reserve raised the interest rate in the US by a quarter of a percentage point to 5%. This is the ninth increase in a row, when a year ago the interest rate was still zero.
The Fed raised the interest rate yesterday despite the heavy fear for the banking sector after the collapse of SVB and the fear of a fall in other banks whose shares have recently fallen. This is with the aim of continuing to cool down inflation, which is indeed slowing down gradually, but not at the pace that the central bank wants.
Last night, the central bank addressed the troubles in the banks: the Fed expressed a cautious attitude regarding the crisis in the banking industry, and said that the sequence of interest rate hikes is close to ending. In the announcement accompanying the decision, the Fed’s Open Market Committee (FOMC) wrote that future increases are not guaranteed and that they will depend on the information received.