USD/ILS volatile on Iran missile denial amid Middle East tensions

USD/ILS experienced heightened volatility following conflicting reports about missile launches from Iran toward Israel. The Israeli military initially reported detecting two missiles from Iran, which were intercepted, while Iran's Islamic Republic Broadcasting denied any breach of the ceasefire agreement. This geopolitical uncertainty has increased safe-haven demand for the US dollar in the region, with USD/ILS trading in a wider range as traders assess escalation risks. Middle East tensions typically strengthen the dollar against emerging market currencies, particularly the Israeli shekel, which remains vulnerable to regional security concerns. The conflicting reports have created additional uncertainty in forex markets, with traders monitoring for potential military retaliation that could further impact currency movements. Near-term USD/ILS direction will likely depend on whether tensions de-escalate or if further incidents occur, with the pair potentially testing higher levels if geopolitical risks intensify.