Jerusalem, 11 September, 2026 (TPS-IL) — The Dollar strengthened against the shekel Friday, trading around NIS 3.045, its highest level since early August and 0.7% above the Bank of Israel’s representative rate. The euro rose 0.6% to about NIS 3.535.
The shekel’s weakness follows losses on Wall Street. Israeli pension funds and insurers hold significant foreign assets and typically buy dollars when U.S. stocks fall, weakening the shekel. Rising oil prices and growing inflation concerns have also increased demand for the dollar.
The ICE Dollar Index, which tracks the dollar against six major currencies, was steady but has gained support from expectations that higher inflation could push the Federal Reserve toward raising interest rates rather than cutting them.
Still, Friday trading is typically thin in Israel, meaning today’s currency moves may be amplified by low liquidity and may not signal a lasting change in market sentiment.