Israeli Shekel at Strongest Since 2022
2025-10-09 14:41
By
Joana Taborda
1 min. read
The Israeli shekel has been strengthening since the start of October, reaching 3.26 per USD, its highest level since August 2022, after Israel and Hamas signed the first phase of a deal aimed at ending the two-year conflict in Gaza.
On October 9th, Israel reached a hostage-release agreement with Hamas and will allow an increase in humanitarian aid deliveries to Gaza.
The ongoing negotiations, brokered by the US, Egypt, Qatar, and Turkey, are based on a framework unveiled by US President Donald Trump.
Talks in Sharm El-Sheikh are expected to continue, focusing on Gaza’s reconstruction and future governance.
The stronger shekel also gives the Bank of Israel more room to ease monetary policy.
Last month, the central bank kept its benchmark interest rate unchanged at 4.5% for the 14th consecutive meeting, citing persistent geopolitical uncertainty.
Meanwhile, inflation eased to 2.9%, returning to the government’s 1%–3% target range for the first time since June 2024.