The euro, meanwhile, dropped to 4.27 shekels. Economists believe a drop to negative interest is almost unavoidable if the April inflation rate comes in lower than expected.
The shekel strengthened on Monday against the main foreign currencies, with the dollar declining by 0.25% to 3.918 shekels, and the euro down 0.35% to 4.227 shekels, according to the Globes financial daily.
In the forex markets, the belief is growing that the Bank of Israel will reduce the interest rate soon to zero or even negative interest due to the low inflation recorded in March that was below expectations and the ongoing strengthening of the shekel against foreign currencies.
Analysts believe that a reduction in the interest rate will be almost inevitable if the April inflation rate comes in lower than forecast.
Last week the dollar broke through the four shekel mark but has since slipped back.
