The U.S. dollar exchange dropped to a 24-year low versus the shekel on Tuesday, and was trading at 3.22 shekels to the dollar. The dollar has fallen against the shekel 6 percent this year.
In light of the shekel's continuing appreciation against foreign currencies, the Bank of Israel has been intervening in the foreign currency market. On Tuesday, the bank was buying up $200-$300 million, currency traders estimated.
Following the bank's dollar purchases Tuesday, the dollar was trading slightly higher at 3.23 shekels, and 0.5 percent under the representative rate from Monday.
The euro-shekel exchange rate was holding steady on Tuesday at 3.95 shekels to the euro. Britain's pound was trading up 0.6 percent at 4.34 shekels to the pound.
The Japanese yuan was down 0.2 percent to 3.13 shekels per 100 yuan.
Since the beginning of 2020, the shekel has gained 4.8 percent against a basket of currencies including Israel's main trading partners.
The shekel has gained value sharply despite Israel's impending elections and the lack of political stability.