Shekel Strength To Continue

May 2008 | Currency Forecast

We remain bullish the Israeli shekel in the short-term particularly in light of the Bank of Israel's (BoI) decision to raise the key lending rate on 24 December by 25bps to 3.5%. We think it could move towards ILS3.10/US$ and then ILS3.00/US$, before correcting back to end the year at around ILS3.40/US$ in line with our view of a US dollar bounce. In the event of this occurring sooner rather than later, the shekel should find support at around ILS3.35/US$ and then ILS3.65/US$.

If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.