The dollar continued to weaken on Wednesday morning, trading at around 3.09 shekels, its lowest level in more than four years. Earlier in the day, it dipped to 3.08, after its official rate was set at 3.104 shekels on Tuesday. The euro edged up slightly to 3.70 shekels, compared with an official rate of 3.697 a day earlier.
The sharp decline in the dollar is creating growing difficulties for exporters and manufacturers. As recently as April last year, the dollar stood at 3.88 shekels, and it has since lost more than 20% of its value.
Ron Tomer, president of the Manufacturers Association of Israel, called on Bank of Israel Gov. Amir Yaron to act to halt what he described as the collapse of the dollar, saying it is already causing losses and export difficulties for industry and the high-tech sector. In recent days, Yaron has said the central bank is monitoring developments in the foreign exchange market, but he declined to say whether or when the Bank of Israel might intervene after a prolonged period without doing so.
The shekel has continued to strengthen despite two interest rate cuts totaling half a percentage point carried out by the central bank within six weeks. For now, assessments are that the Bank of Israel will not cut rates again at its Feb. 23 decision, though forecasts are growing that the benchmark rate will be reduced to 3.75% on March 30, particularly if the dollar continues to fall.
The sharp drop in both the dollar and the euro is benefiting Israelis traveling abroad and is already lowering the cost of flights, hotel stays, car rentals and overseas shopping, saving families hundreds or even thousands of shekels on vacations abroad.
First published: 09:32, 01.28.26