Recently, the USD to ILS exchange rate has been influenced significantly by both economic data from the U.S. and geopolitical developments in Israel. The U.S. dollar received a boost following better-than-expected job figures, with non-farm payrolls rising to 147,000 in June, exceeding forecasts and reflecting a stronger economic outlook. As a safe-haven currency, the USD typically strengthens during periods of global uncertainty, and recent developments have reinforced this trend.
Market analysts note that the dollar's value is shaped by various factors, particularly the policies of the Federal Reserve. With higher interest rates attracting investment, fluctuations in the federal interest rate can have a direct impact on the USD, making it stronger during economic turbulence. The dollar's role as the world's primary reserve currency ensures its demand, especially during crises.
In contrast, the Israeli shekel has faced substantial challenges, particularly following the recent escalation in conflict in the region. With the Israeli currency hitting nearly eight-year lows against the dollar, concerns over the geopolitical landscape and economic stability are significant contributors. A 17% reciprocal tariff imposed by the U.S. on Israeli imports has compounded these issues, exerting further pressure on the shekel's value.
Currently, USD to ILS trades at approximately 3.3387, which is 6.3% below its three-month average of 3.5642. The pair has exhibited notable volatility, reflecting a range of 14.4% between 3.3387 and 3.8188. Experts suggest that continued geopolitical instability and economic conditions in Israel will likely keep downward pressure on the shekel, while positive economic data from the U.S. may support further strength in the dollar.
In summary, analysts expect the USD to maintain a strong position driven by solid economic performances, while the ILS may continue to struggle amidst geopolitical tensions and economic pressures within Israel. Businesses and individuals engaging in international transactions should remain vigilant, as fluctuations in this currency pair may present opportunities or risks depending on future developments.
