JERUSALEM, Feb. 12 (Xinhua) -- The Israeli currency shekel on Thursday rose to its strongest level against the U.S. dollar in over 30 years, trading at 3.068 shekels per dollar, according to representative rates published by Israel's central bank.
It marked the shekel's strongest value since Nov. 29, 1995, when it stood at 3.065 per dollar.
In October 2023, following the Hamas attack on southern Israel and the onset of Israel's multi-front conflict, the shekel fell to 4.081 per dollar.
Joseph Freiman, CEO of the Israeli financial Prico Group, told Xinhua that the easing of security concerns in Israel continues to support the shekel's strength against the dollar.
He added that an oversupply of foreign currency in the market is putting additional downward pressure on the dollar, reinforcing the shekel's appreciation.
Israeli business daily Globes cited major tech exits bringing foreign currency into Israel, strong inflows from overseas investors, and global weakness in the U.S. dollar as driving the shekel's rise.
Freiman estimated that Israel's central bank would prefer to wait for the approval of the state budget in parliament, which is scheduled for next month, before taking significant steps in the local foreign exchange market.
However, he noted that the bank may reduce the base interest rate earlier than expected, as part of its steps to reduce the profitability of holding the shekel. ■
