The shekel paradox
The factors driving Israel’s currency higher may owe less to Jerusalem than to Silicon Valley The Israeli shekel’s surge to a 33-year high against the dollar—breaching the psychologically significant threshold of three to the greenback for the first time since 1993—is one of the stranger puzzles in global currency markets. Up roughly 24% since early last year and nearly 10% in 2026 alone, the shekel is outpacing every one of its peers, even as the country remains embroiled in a multi-front conflict. The most popular fundamental explanations for the rally are, on closer inspection, wanting. Start with defence exports. Israel...