The Israeli shekel is increasing in value against the dollar and euro, with the dollar equal to less than 3.2 shekels this week—the first time since January it fell below 3.2.

“Excessive surplus supply of foreign currency in the domestic market is pushing the appreciation of the shekel,” said Yossi Fraiman, CEO of Prico Risk Management and Investments, reported the Israeli business daily Globes on Wednesday.

“Supply of foreign currency is due to foreign-currency sales by importers and companies holding overseas offerings, as well as the movement of foreign currency to Israel to invest in shekel bonds by foreign investors,” he said.

“According to our estimates, and with the U.S. Federal Reserve due to meet next week, the potential for the continued strengthening of the shekel is limited in the short term, and the Israeli currency may start weakening,” explained Fraiman. “But looking to the long term, there is no change in our estimates that the shekel is expected to strengthen in a significant way.”

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