The dollar representative rate climbed 0.2% yesterday (Tuesday) to 3.937 shekels, while the euro rose by the same amount to 4.461 shekels.
The Bank of Israel is under pressure due to moves by the European Central Bank to boost the eurozone economy, according to analysts.
Foreign exchange analysts indicate that the strengthening of the shekel in the past two months will serve to lower inflation forecasts.
"Two months ago, on 3 December 2014, the Bank of Israel examined the exchange rate against the basket of currencies and saw there had been a decline of 10.4% in the shekel value against the currency basket from the level recorded on 1 August 2014. But since then, and as of last Friday, the shekel wiped out more than half of that depreciation to 4.1% only," the Calcalist newspaper reported.
Today, Wednesday, foreign exchange trading was largely flat, with the exchange rate against the dollar and euro unchanged.
