Shekel hits four-year high against dollar, in 18% jump over past year

By Sharon Wrobel

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28 January 2026, 5:42 pm

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Sharon Wrobel is a tech reporter for The Times of Israel

Illustrative: A man counts stacks of Israeli shekel and US dollar banknotes at an informal money exchange stall in Deir al-Balah in the central Gaza Strip on July 2, 2024. (Bashar TALEB / AFP)

The Israeli shekel strengthens to around a four-year high amid continued gains in the local stock market, a flow of investments into tech and defense companies, and a weakening dollar globally.

The shekel trades around NIS 3.09 against the dollar.

The local currency has gained about 3% against the greenback this month and 18% over the past year.

“Markets have remained fairly calm, despite concern regarding a US strike on Iran, which could embroil Israel,” says Leader Capital Markets chief economist Jonathan Katz.

“Macroeconomic factors (primarily a rapid expansion in the high-tech sector and capital raising from abroad) continue to support pressure for shekel appreciation, which supports more moderate inflation and lower rates.”

The Tel Aviv-35 index of blue-chip companies was little changed but is up more than 10% so far this year. The TA-Defense Index gains 1.3% and has risen 32% since the start of 2026. The TA-Technology Index adds 0.8%, taking this year’s increase to 19%.

“The strong gains in the Israeli share market in recent days and weeks are luring foreign and local institutional investors to shift funds from abroad into the Tel Aviv stock market, which in turn means that they are selling the US currency and are buying shekels, fueling shekel appreciation,” says Mizrahi Tefahot Bank chief markets economist Ronen Menahem. “In addition, the shekel is also gaining as the dollar weakens globally.”