The Israeli shekel surged up against the US dollar after the release of Bank of Israel's Interest Rate decision in New York deals on Monday. The Bank of Israel raised its key policy rate by 25 basis points to 1.75% on Monday after keeping it unchanged for three straight months, citing low inflationary pressures in the next few months.

At around 2:00 pm ET, the shekel climbed to 3.8100 versus the greenback, which may be compared to last week's closing value of 3.8515. This set a new multi-week high for the Israeli currency.

The move came as a surprise, as the central bank was widely expected to retain the interest rate at 1.5%. Meanwhile, Israeli forecasters predicted further rate hikes going forward.

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