The Israeli shekel has surged to its strongest level since 1995, with the U.S. dollar dropping below the NIS 3 threshold for the first time in 31 years, trading around 2.99–3.00.

•⁠ ⁠The gains are driven by sustained inflows from foreign investment and Israel’s tech sector, with about $39B in 2025 and $25B in 2024 converted into shekels.

•⁠ ⁠A stronger shekel lowers import costs and inflation, but puts pressure on exporters and companies earning in dollars.

•⁠ ⁠Some firms report profit declines of about 16%, with growing concern over shifting operations abroad despite no clear evidence yet of a drop in Israeli exports.