USD/ILS Extends Gains Despite Temporary Reprieve Surrounding Israel's New Banking Bill

Spot USD/ILS climbs to its best levels in three weeks, with the move facilitated by broader greenback strength. In Israel, the ruling coalition froze its banking bill after it received sharp criticism from Bank of Israel Governor Amir Yaron.

• USD/ILS last deals at 3.6780, up 192 pips on the session. The rate has ripped through its 50-DMA yesterday and bulls are now taking aim at 3.7551, which capped gains on Jun 2. Bears eye the 200-DMA at 3.5547 for initial support.
• In a strongly worded letter yesterday, Yaron called the bill a "serious blow" to central bank independence. The legislation stipulates that interest rates paid on checking accounts would be determined by BoI Governor with the approval of Finance Minister. This would give the government considerable influence on interest rates.
• Commercial banks have been asked to develop plans for offering better terms to their customers. The ruling coalition will revisit its decision to halt the bill once these proposals are presented next week.
• The TA-125 Index eased off early doors but then regained poise, clawing back some of yesterday's losses. Israel's benchmark equity index last sits ~0.5% above previous close. The index's losses deepened yesterday on the publication of Yaron's letter.