USD/ILS refers to the US Dollar/ Israeli new shekel currency pair. ILS, domestically referred to as NIS, has been the national currency of the State of Israel since 1986. It replaced the original shekel, 1,000 to 1, which was revalued due to hyper-inflation....
Since that point, the Israeli new shekel has remained stable and it became a hard, or convertible currency in 2003. This means it can be traded on foreign exchange markets with few restrictions, acting as a reliable store of value, and can be bought or sold with relative ease. Trading via derivatives on the Chicago Mercantile Exchange has been possible since 2006. Israel is a developed, free-market economy. In May 2010, Israel was invited to join the Organisation for Economic Co-operation and Development, the 38-member intergovernmental organisation designed to stimulate economic progress and global trade. Israel’s primary economic sectors are high-tech and industrial manufacturing. In addition, the Israeli diamond industry accounts for over 20% of the country’s exports. However, the Israeli economy has been somewhat hampered by geopolitical instability within Israel and the broader Middle East. As an exotic currency pair USD/ILS provides a way to diversify a currency portfolio. It is less liquid than the majors, with greater volatility, which offers some potentially lucrative opportunities.
Most Recent
The past handful of days have seen the USD/ILS continue to move lower and the currency pair has essentially returned to values seen in early October.
The USD/ILS has come off of its highs seen a handful of days ago, and the currency pair has produced selling in the wake of the U.S Federal Reserve’s FOMC Statement yesterday.
The USD/ILS continues to incrementally increase as financial institutions remain nervous about the current challenges Israel faces as it engages in war.