Shekel Gains 5.9% Against Dollar in Second Quarter

The Bank of Israel said the shekel strengthened 5.9% against the dollar and 6.6% against the euro during the second quarter of 2026. Its nominal effective exchange rate, measured against Israel’s main trading partners, rose 6.1%. Actual dollar-shekel volatility increased by 2.3 percentage points to an average 10.7%, while implied over-the-counter volatility rose 0.2 points to 9.9%. The bank estimated that nonresidents shifted to net foreign-currency sales and institutional investors increased their net sales, while businesses made significant net purchases.