Shekel hits a 30-year high against the dollar

Israel’s shekel gains, hitting a 30-year high against the dollar as the local currency’s strength continues to be driven by expectations for an improving geopolitical environment and a fast postwar economic recovery, alongside a weak dollar globally.

The Bank of Israel’s shekel representative rate closed at NIS 3.0680 to the dollar, the highest rate since 1995. So far this year, the currency has appreciated by about 4% against the dollar and by 15% over the past year.

“The fast strengthening of the shekel stems from both an ongoing weakening of the dollar against many world currencies and increases in the local stock exchange, which continue to attract funds from both foreign and local investors,” Mizrahi Tefahot Bank chief markets economist Ronen Menahem tells The Times of Israel.

“The fairly good performance of the economy and the capital market, despite two years of war, is a testament to resilience, which in turn has led to an inflow of investments and foreign capital, especially in the local tech industry, which in turn strengthens the local currency.”

Menahem adds that “from the perspective of consumers, their situation has improved because products they buy and import from abroad are becoming cheaper, especially online purchases.”