Dollar's Rebound Leaves Israeli Tech Firms at a Crossroads

The US dollar's recent rebound has brought back a familiar dilemma for Israeli tech companies: should they hedge their currency exposure or wait in the hope that the trend continues?

The Finance Ministry's efforts to support the tech sector illustrate this challenge. Grants and incentives may provide temporary relief, but they do not solve the structural problem of companies earning and raising dollars while paying costs in shekels.

A serial entrepreneur who raised a substantial funding round about a year earlier, when the dollar traded at around NIS 3.50, told Moran Chamsi that he didn't hedge, which was 'probably the biggest financial mistake I've ever made.'