(Bloomberg) -- The Israeli shekel surged to its strongest level in more than 25 years in the run-up to the central bank's policy decision this month.
The currency jumped as much as 1.7% to 3.1119 per dollar on Monday, a level unseen since March 1996. The shekel extended its gain in the past week to approximately 2.8%, the most among a basket of major developed and emerging-market currencies tracked by Bloomberg.
The shekel's gains come after the Bank of Israel's said last month that it will roll back its 85-billion-shekel ($27.3 billion) bond-purchase program by year's end, tightening monetary policy as inflation rises and the economy recovers. The move preceded a key Federal Reserve policy decision on Wednesday, where officials are expected to kick off a tapering of asset purchases.
Bank of Israel is set to meet on Nov. 22 to decide on policy. Governor Amir Yaron said in October that he expects the program to end by November or December, barring unforeseen circumstances.
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