Dollar Falls Below Three Shekels For First Time In Over 30 Years, Annual Inflation Rate Declines
The dollar fell below NIS 3 for the first time in over 30 years on Wednesday, continuing to falter on optimism around a ceasefire and a possible resolution of the Iran crisis, prompting concern from Israeli exporters.
The dollar-shekel exchange fell to 2.993, the US currency’s lowest level since October 1995. The dollar has depreciated some five percent against the shekel so far in 2026 and 25% since April 2025.
Avraham Novogrocki, president of Israel’s Manufacturers’ Association, which represents some 1,500 firms and 400,000 workers, said the strong shekel posed a risk to the economy.
“A dollar below NIS 3 is a death blow to export profitability,” he said. “A cumulative drop of about 20% in the exchange rate completely erases profit margins and pushes factories to the brink of closure.”