SHEKEL opened the Forex trading week weaker sharply, although its losses lost a little in the afternoon trading in the afternoon. SHEKEL is currently 0.47 % against the US dollar at 3.603/$ and 0.89 % against the euro at 4.094/€. This is a major change in the direction in late April, mainly due to the escalation of security as the Israeli cabinet decided to expand the war in Gaza.
Ronin Minash, the chief economist at the Tivahot Bank, explains that the low value of the day is not due to global trends but local developments. “Shekel is weakening due to the increase in security tensions, the expansion of the scope of activity in Gaza, the Houthi and Iran data, and its recent gains are relatively from $ 3.81/dollars to $ 3.60/dollars. The dollar has already weakened the dollar around the world, which enhances the assumption that a checkel decline is due to local issues.”
Briko Yossi Freeman’s CEO expresses similar feelings. However, Freeman adds that without great events in the defense scene, she will strengthen Shekel again against the dollar.
This is a sharp change in the direction late last month in the foreign exchange market, when Shekel was estimated against the dollar from $ 3.81/$ to levels less than 3.60/$ – an unprecedented level since the beginning of March. Analysts considered this reinforcement in response to the positive market title and geopolitical stability. Now it turns out that optimism was premature
Where is the market heading?
Menachem confirms that everything depends on security developments: “There is now a strong relationship between the continuous levels of the shekel and the security environment. The renewal of intense fighting in Gaza can be the end of the period of restriction against the Houthis and renewed the heating of the conflict with Iran can lead a shekel to 3.80/$ or even higher.”
Freeman believes that without further events, shekel’s resonance is expected to renew in the short term: “This week, wages are expected to be paid in the economy, so foreign -currency companies need to turn them into formations in order to pay salaries, which strengthens shekels against the dollar.”
It was published by Globes, Israel Business News – En.globes.co.il – on May 5, 2025.
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