Jerusalem, 28 September, 2026 (TPS-IL) — The U.S. dollar opened the week around NIS 3.05, rising 0.6% and reaching its strongest level against the shekel in recent weeks. The dollar has gained about 2.5% since the end of August, when it traded around NIS 2.97.
The move has been driven largely by global factors, including oil prices near $106 a barrel and U.S. 10-year Treasury yields around 5.2%, increasing expectations that the Federal Reserve may keep interest rates higher for longer.
Tensions surrounding Iran are also supporting demand for the dollar as a safe-haven currency, while adding to Israel’s risk premium.
Despite the recent rise, the shekel remains about 4% stronger against the dollar since the beginning of 2026. Bank of Israel rate cuts have widened the interest-rate gap with the United States, currently favoring the dollar.
