Economic hysteria: The dollar exchange rate plunged below three shekels today (Wednesday) for the first time in about 30 years.
According to the economic website Ace, the decline in the dollar comes mainly from the strengthening of the shekel, and the main fuel for the appreciation is the sharp decline in Israel's risk premium. The ceasefire with Iran, along with the official talks that opened between Israel and Lebanon, have changed the picture of risk that the market is pricing.
According to the report, international investors, who in recent months have received high compensation for holding Israeli assets, are beginning to see Israel in a different light.
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Added to this are positive structural factors: the high-tech industry continues to raise capital from abroad at a high rate, defense exports are expected to grow significantly following the war, and the Israeli economy in general is demonstrating a resilience that few expected a year ago.
The dollar itself has also weakened against most currencies in the world - which gives additional support to the shekel.
Commentator Amit Segal commented on the turnaround: "The last time the dollar was this weak was so long ago, when Bibi was prime minister, Deri was the chairman of Shas, and the IDF was fighting in a security zone in southern Lebanon.".
