ILS Market Update
16 May 2026 • 01:17 GMT
The Israeli shekel continues to show strength against the US dollar, with the ILS/USD rate near 0.3425, its lowest point over the past week. This level is about 4.5% higher than its three-month average of 0.3279, reflecting ongoing bullish momentum. Recent factors supporting the shekel include the Bank of Israel's surprise rate cut in January to 4.00%, combined with the country's improved economic outlook and regional developments like strengthening relations in the Middle East.
Additionally, the shekel has gained against a broad basket of currencies, reaching 90-day highs against the British pound and the Australian dollar, and remaining above its three-month averages across many pairs. These moves point to a continued investor confidence in Israel's economic stability, even as global geopolitical tensions ease somewhat.
While the US dollar has softened somewhat amid easing geopolitical concerns and cautious Federal Reserve tone, the shekel's resilience is driven by domestic monetary policy and regional dynamics. Expect the shekel to remain relatively strong, although volatility may persist given recent markets’ movements.
