ILS Market Update
30 Jun 2026 • 00:35 GMT
The Israeli shekel (ILS) remains somewhat weaker against the US dollar (USD), trading at approximately 0.3347, which is about 1.1% below its three-month average. The currency has experienced notable volatility, trading in a wide range from 0.3168 to 0.3569 over recent months. This movement reflects a combination of regional developments and domestic economic policies.
In early 2026, the Bank of Israel surprised markets by lowering interest rates by 0.25% to 4.00, citing better inflation data and a stronger shekel. Meanwhile, the shekel appreciated roughly 3.5% against the US dollar during the last quarter of 2025, supported by regional geopolitical stability and solid economic fundamentals. Additionally, forecasts from UBS have recently turned more bullish on the shekel, expecting further strength due to reduced geopolitical risks.
Despite the dollar's recent rally driven by expectations of a potential Federal Reserve rate hike, the shekel has shown resilience, influenced by Israel's proactive monetary and regional stability. Overall, traders should continue monitoring both local policy developments and broader USD trends, as funding costs and interest rate expectations remain key factors for the shekel's trajectory.
