Five Currencies Outperform the US Dollar in 2026, Including the Israeli Shekel

Amid the persistent depreciation of the Indonesian rupiah against the US dollar throughout 2026, a number of emerging market currencies have managed to outperform the greenback. Data from Refinitiv up to Wednesday (3/6/2026) reveals five currencies that have recorded significant gains against the US dollar since the start of the year. These currencies belong to Zambia, Paraguay, Israel, Brazil, and the Dominican Republic. This appreciation indicates that the pressure from the US dollar has not been evenly distributed across all global currencies. Several countries are still able to record appreciation thanks to a combination of domestic factors, such as monetary policy, commodity sentiment, capital flows, and economic conditions that are relatively more attractive to investors. The Zambian kwacha posted the largest gain against the US dollar since early 2026. Its exchange rate moved from ZMW 22.10/US$ to ZMW 17.80/US, representinganappreciationofapproximately19.5 to PYG 6,114.46/US, anappreciationof11.7 to ILS 2.863/US.Thisperformanceshowsthatthemarketconsidersdomesticeconomicresiliencealongsidegeopoliticalrisks.Israel′sstrongtechnologysectorcontinuestoattractglobalinvestors.Theshekel′sappreciationactsasadouble − edgedsword, helpingtosuppressimportinflationbutpotentiallypressuringexporterswhoreceiveincomeinUSdollars.TheBrazilianrealstrengthenedby8.6 to BRL 5.004/US.Itsattractivenessstemsfromacombinationofcommoditiesandyield.Asamajorcommodityexporter, Brazilbenefitsfromimprovedcommodityprices, whilerelativelyhighinterestrateskeepreal − denominatedassetsattractiveforinvestorsseekinghigherreturnsinemergingmarkets.TheDominicanpesoappreciatedby7.9. The currency’s main support comes from tourism and remittances, two vital sources of foreign exchange. Steady tourist visits and continuous money transfers from citizens abroad maintain the domestic dollar supply, helping the peso remain stable and even strengthen against the US dollar.