The shekel has reached its strongest level against the dollar in over three years, buoyed by expectations of a United States interest rate cut and relative economic stability in Israel. The widening gap between United States and Israeli interest rates is making the shekel more attractive to investors, with analysts also pointing to increased foreign investment in Israeli startups and defense exports. Recent government deficit data and gains on Wall Street have further supported the shekel's rise. While a United States rate cut is anticipated soon, experts believe the Bank of Israel will maintain its current rate in the near term, with only gradual adjustments expected in the coming years.