Overview
- The currency climbed to 2.99 shekels per U.S. dollar, its strongest level since October 1995, crossing the three-per-dollar mark.
- Traders and reporters tied the jump to investor optimism over recent diplomatic moves in the region and to a softer U.S. dollar.
- Bank of Israel data show foreign net inflows rose to $39 billion in 2025 from $25 billion in 2024, boosting demand for shekels.
- The stronger currency cuts import and travel costs, helps keep inflation within the 1%–3% target, and squeezes exporters’ margins as foreign revenue converts into fewer shekels.
- Economists say the central bank could step in through foreign-currency purchases or interest-rate changes if the rally stokes volatility.