JP Morgan predicted that the Israeli shekel will end the year at 2.95 against the dollar, compared to its previous forecast of 2.80, noting that the Bank of Israel is adopting a more interventionist approach than previously anticipated.

The bank's analysts explained in a note published on Thursday that three main factors drove the revision: the Bank of Israel's shift toward a more accommodative monetary policy than expected, its 'moderate' interventions in the foreign exchange market, and a 'sudden shift' in investor sentiment toward global tech stocks, driven by increased competition in artificial intelligence and regulatory concerns.