Jerusalem, 28 October, 2026 (TPS-IL) — Israel’s foreign exchange market opened Wednesday with significant volatility, as the shekel weakened against major currencies after a sharp gain the previous day. The dollar rose approximately 1% to trade near NIS 3.09 ($0.32), while the euro climbed by a similar percentage, crossing NIS 3.43.
The reversal followed preliminary results from Israel’s 26th Knesset election, which indicated the possibility of continued political uncertainty. Investors are watching negotiations to form the next government and whether political leaders can establish a stable governing coalition.
Despite the shekel’s decline, currency movements do not necessarily signal a fundamental deterioration in Israel’s economic condition. Market reactions may also reflect speculative trading, changing investor expectations, and developments in the regional security situation and international markets.
The coming days may provide further indications of how investors assess Israel’s political outlook.
