US Dollar Rises Above NIS 3.05 as Oil, US Yields and Iran Tensions Weigh on Shekel
The U.S. dollar rose above NIS 3.05 against the shekel due to global factors like oil prices, U.S. yields, and Iran tensions.
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.