The dollar fell to a new three-decade low against the shekel, dropping to NIS 2.92. The representative dollar rate yesterday stood at NIS 2.944. The euro traded at NIS 3.44, the same as its representative rate. The dollar also retreated against most major currencies after the U.S. signaled that it may be nearing an agreement with Iran.
U.S. President Donald Trump said he would temporarily halt an operation escorting ships through the Strait of Hormuz, citing progress toward a comprehensive agreement with Iran. His remarks came shortly after U.S. Secretary of State Marco Rubio said Tuesday that the U.S. had achieved its objectives in the military operation against Iran and was “not interested in further escalation.” WTI crude fell to $100 a barrel, while Brent crude fell to $108.
“The signals sent from the United States appear to offer reassurance that it's not interested in renewing hostilities,” said Kyle Rodda, a senior analyst at Capital.com. Still, he said the news was not entirely positive, as oil remains under pressure and the strait is still closed. “That suggests upward pressure on oil will persist, which could cause a headache for the markets once again down the line.”
The euro stood at $1.1714 and the pound traded at $1.35685, both up about 0.2% since the start of the day. The Australian dollar traded at $0.7208, up nearly 0.4%, while the New Zealand dollar rose 0.3% to $0.5905. The dollar index, which measures the greenback against a basket of six leading currencies, fell 0.5% to 97.8 points.
Markets are now awaiting the release of U.S. employment data later this week, which will test whether the economy remains stable enough for the Fed to keep policy unchanged or whether weakness in the labor market will revive the possibility of rate cuts. Against the yen, the dollar traded at 157.62 yen, down 0.17%, but still well above its post-intervention low last week despite falling oil prices. According to IG analysts, the move suggests the recovery is tied more to the absence of further intervention by Japanese authorities.