Israeli Shekel Strengthens Against Dollar, Forecasts Predict Further Decline

The Israeli shekel continues to strengthen against the US dollar, which recently fell below the 3-shekel mark and is currently trading around 2.98 shekels. Or Furia, chairman of Furia Finance, told Maariv that the shekel's appreciation trend could persist in the medium to long term, potentially pushing the dollar below 2.8 shekels. He explained that current market movements are influenced by three main factors: tensions in the Middle East, volatility in semiconductor stocks, and encouraging inflation data from both the United States and Israel.

Despite ongoing security concerns in the region, Furia believes investors have already priced in the current risk levels. Oil prices remain stable around $80 per barrel, showing no extreme reactions that would indicate significant fears of supply disruptions. Meanwhile, Israeli stock indices have seen sharp gains, led by banking and insurance sector shares. Furia noted that if the shekel continues to strengthen and the dollar falls to the 2.7 range, it would mark an exchange rate level not seen in Israel since the 1990s.