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Tel Aviv, 7 April – The Israeli shekel continues to lose ground, with the dollar rising by 0.9% to NIS 3.77, its highest level since October 2024. The euro also strengthened, rising by 0.6% to NIS 4.14, Walla reports.
This growth contradicts the global trend, where most currencies, on the contrary, are strengthening against the dollar. In Israel, the US currency has shown a significant strengthening compared to the representative rate recorded on Friday – NIS 3.72. Experts point to both foreign economic factors and domestic political instability as reasons for this.
Trump’s tariff pressure and fear of recession
The strengthening of the dollar is partly due to the new tariff plans of US President Donald Trump, who has promised that foreign governments will “pay big bucks” if they want to avoid US duties. According to Trump, he is not worried about the fall in stock markets – he calls his policy a “cure” for the economy and is ready to take tough measures:
“Sometimes you have to act tough to fix something,” the president said.
Despite investors’ hopes that economic pressure would force Trump to reconsider his strategy, he rejected all requests from European and Asian leaders to reduce tariffs by 50%.
“Until they start paying the US a lot of money every year, there will be no talk,” Trump added.
Asian markets in the red, Wall Street on the verge of panic
Asian stock markets reacted sharply: the Nikkei index in Japan fell by 7%, the Hang Seng in Hong Kong by 10.5%, and the Kospi in South Korea by 5%.
Nasdaq futures lost 4.4% and S&P 500 futures lost 3.1%, which, according to analysts, led to losses of more than $6 trillion in one week.
Wall Street is preparing for the next opening after the weekend with particular anxiety: on Friday, the Nasdaq lost 5.5% per day, and 21% since its December peak. The S&P 500 index was down 6% for the day and 9.1% for the week. Shares of large companies are falling rapidly, and the so-called “fear index” has reached 41 points.
Threats from Gaza and geopolitical tensions
The economic factors are compounded by the deteriorating security situation in Israel – the day before, a rocket attack from Gaza was recorded, which puts additional pressure on the shekel.
Analysts note that investors are avoiding risky assets and seeking protection in the dollar, especially as Washington’s political decisions directly affect the global economy.
Looking to the future
According to leading economists, including Bruce Kassman of JPMorgan, the probability of a recession in the US is currently estimated at 60%. Experts warn that if the Trump administration does not change course, the world could face a new wave of economic crisis, which could be even deeper than in 2020.
Unlike the pandemic, today’s crisis has clear political origins – its source is in the decision of one man. And while markets are shuddering and national currencies are weakening, the dollar retains its status as a global safe haven – to the benefit of the US, but not without consequences for the rest of the world.
