The Bank of Israel published its second-quarter 2026 foreign exchange market review, reporting that the shekel strengthened by 5.9% against the US dollar, 6.6% against the euro and 6.1% on a nominal effective exchange-rate basis. Actual shekel-dollar volatility rose 2.3 percentage points to an average of 10.7%, while implied volatility increased 0.2 percentage points to about 9.9% at quarter-end. Foreign exchange activity shifted substantially across market segments. Institutional investors increased net foreign exchange sales to USD 18.3 billion, businesses moved to net purchases of USD 12.2 billion and nonresidents shifted to net sales of USD 6.4 billion. The Bank of Israel made net purchases of USD 1.8 billion. Average daily trading volume with domestic banks rose 8.9% to USD 17.6 billion, while nonresidents’ share of that volume fell 4.5 percentage points to 36.2%.
Bank of Israel2026-08-02
Bank of Israel reports 5.9% shekel appreciation against US dollar in second quarter
The Bank of Israel reported that the shekel strengthened by 5.9% against the US dollar and 6.6% against the euro in the second quarter of 2026, while actual and implied volatility increased. Institutional investors recorded USD 18.3 billion in net foreign exchange sales, businesses shifted to USD 12.2 billion in net purchases and the central bank made USD 1.8 billion in net purchases.