Foreign Exchange

Rafael concludes a strong quarter with a 39% jump in new orders to 6.9 billion shekels and 20% growth in sales to 5.6 billion shekels. More than 60% of orders in the first half came from exports, and against the backdrop of the strengthening shekel, CEO Yoav Turgeman warns of damage to profitability and competitiveness: "State intervention is required."

The local foreign exchange market remains calm following the shekel's recent retreat. Bank of Israel Governor Amir Yaron stated that an interest rate cut at the September 1 meeting is not guaranteed.

A Bank of Israel report shows that in the second quarter of 2026, the shekel defied global trends by strengthening against the dollar, even as the US currency gained ground elsewhere. This shift was primarily driven by massive foreign currency sales from institutional investors managing public savings.