Economy / Israel
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Shekel Strength To Continue
May 2008 | Currency ForecastSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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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$.