The weakening trend of the dollar continues: last Friday the American currency fell against the shekel by more than 1% and its representative rate was locked at the level of 3.3790.
After the publication of the representative, the dollar rose again against the shekel to the level of 3.40.
Since the beginning of the month, the dollar has fallen by more than 5% against the Israeli currency.
Against the euro, the dollar lost about 7% in the same period.
The weakening of the dollar in recent weeks is explained by a positive trend in the US stock markets. Rate increases increased last Wednesday when the Chairman of the US Central Bank, Jerome Powell, signaled to investors that due to the cooling of inflation, interest rate increases in the future are expected to be more moderate than they were So far. This, after raising interest rates by 0.75% the last four times. Now the markets are pricing in a higher probability that the next increase will be at a rate of 0.5%.
This, despite the fact that the job market in the US continues to be tight, with an unemployment rate that is close to the lowest in several decades - 3.7%.
Wage increase in the US
According to a report by the US Department of Labor published last Friday, 263,000 jobs were added to the US labor market in November, a figure significantly higher than expected, and the increase in wages last month was double what was expected. The average hourly wage in the US increased by 5.1% in the past year.
The strong US labor market, which shows no signs of slowing down despite the high interest rates, ignites the inflationary pressures, so that Fed Chairman Powell expects a difficult dilemma in the upcoming interest rate decision on December 14: on the one hand, inflation has just begun to decline, and on the other hand, the labor market may ignite her again.
Let's recall that the American interest rate is currently in the range of 3.75%-4% - its highest level since the beginning of the subprime crisis in 2008.
Bloomberg macro strategist Simon White explained the strength of the US labor market: "The data shows that more new jobs have been added this year as a result of many working multiple jobs. This may be why wage figures also remain high due to continued demand from people who need more than one job to help the expensive the living; or are able to perform an additional job due to the possibility of working remotely."
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