The Dollar Rises

Unstoppable: The dollar jumps to a three-year high

Despite credit rating agency Fitch's forecast to maintain Israel's credit rating, the dollar rose this morning and traded around 3.77 shekels, reaching a three-year high since the outbreak of the COVID-19 pandemic in 2020.

(Photo: Yossi Zamir/Flash90)

This morning (Tuesday), trading opened with significant fluctuations in the shekel, as the dollar traded around 3.77 NIS. The last time it was traded at this level was during the COVID-19 outbreak in 2020 and prior to that in 2017.

The euro is also strengthening against the shekel, trading at a rate of 4.11 NIS. All of this is happening just before the publication of the consumer price index tonight.

This increase is occurring despite the fact that yesterday, the credit rating agency Fitch left Israel's credit rating unchanged, remaining stable at A+ level, with a stable outlook.

The rise of the dollar poses significant challenges to the local market and the import industry. This increase leads to inflation in food products and even in housing construction. Imported goods to Israel will become more expensive, and now, during the vacationing season, even traveling abroad will become more expensive. Purchasing flight tickets, renting hotel rooms and cars abroad, all of these are paid in foreign currency and will become more costly when converted to shekels.

However, there are those who benefit, namely the exporters who increase their profits due to the high dollar exchange rate. Expenses in the country, such as salaries, taxes, bills, and the like, are in shekels, but the profits earned in dollars are advantageous for them.

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