Israeli new sheqel (ILS) market outlook and exchange rates

ILS Market Update

11 Aug 2026 • 00:35 GMT

ILS/USD 0.3335

The Israeli shekel continues to strengthen against the US dollar, trading close to 30-day highs around 0.3335, about 1.1% below its 3-month average of 0.3372. This follows recent regional and domestic developments. In late 2025, the shekel appreciated roughly 3.5% versus the dollar, driven by improved economic conditions and regional stability. Additionally, the Bank of Israel’s unexpected rate cut to 4.00% in January signals confidence in the country's economic outlook and supports the currency.

Despite the broader strength of the US dollar—supported by expectations of Federal Reserve interest rate hikes and cautious risk sentiment—the shekel's resilience reflects its local fundamentals and geopolitical stability following improved relations in the region. The shear's recent performance shows volatility, but its trend remains positive, with forecasts from analysts like UBS suggesting continued appreciation.

In the near term, watch for regional geopolitical developments and US economic data, especially inflation, which could influence global dollar moves. Overall, the shekel remains well-supported amid favorable economic signals and regional peace efforts, maintaining its recent upward momentum against the US dollar.