The Israeli currency and dollar bonds posted some of the biggest gains in emerging markets after the country announced it would send a delegation to a new round of talks on a ceasefire agreement with Hamas.
The shekel rose 1.1% against the U.S. dollar as of 11:41 a.m. in Tel Aviv, one of the biggest currency gains globally on Friday and the fourth day of gains.The country’s dollar-denominated sovereign bond due July 2030 rose 0.7 cents on the dollar, among the best performers on the Bloomberg EM Sovereign Total Return Index.
Investors are increasingly optimistic about renewed efforts to bring about a pause in the war between Israel and Hamas, as the United States, Qatar and Egypt increase pressure to negotiate. Meanwhile, US planes arrive in the Middle East in an attempt to deter Iran and its allies from attacking Israeleasing fears of a wider war that sparked a sell-off in Israeli assets earlier in the week.
The benchmark TA-35 index, which includes technology companies, also recovered ground after the global market fell on Monday. On Thursday it completed its biggest three-day rise since November.
