The USD to ILS exchange rate is currently range-bound.
Recent trends show a notable weakening of the USD driven by anticipated Federal Reserve rate cuts in 2026. This monetary easing is likely to lower the dollar's value in the short term. Meanwhile, Israel's economic outlook is robust, with a forecasted GDP growth of 4.7%, supporting the Israeli shekel's strength. Investor confidence has improved following geopolitical developments, further bolstering the ILS.
The expected near-term trading range for USD/ILS may remain narrow, reflecting a relatively stable environment.
An upside risk could stem from an unexpected surge in global commodity prices, which might boost the USD. Conversely, a downside risk could arise if geopolitical tensions escalate, negatively impacting investor sentiment towards the shekel and enhancing demand for the dollar.
