Swiss financial institution Lombard Odier sees the shekel-dollar alternate price at NIS 3.75/$ over the subsequent 12 months.
The shekel is strengthening immediately in opposition to the greenback and steady in opposition to the euro after the US Federal Reserve yesterday hiked the rate of interest by 0.25% to 4.75%-5%.. In afternoon inter-bank buying and selling, the shekel-dollar price is down 0.77%, at NIS 3.614/$, and the shekel-euro price is down 0.07%, at NIS 3.93/€.
Yesterday, the Bank of Israel set the consultant shekel-dollar price down 0.219% from Tuesday, at NIS 3.642/$, and the consultant shekel-euro price was set 0.066% decrease at NIS 3.933/€.
The shekel has been strengthening this week in opposition to the greenback after briefly concerning NIS 3.70/$ on Monday morning. This displays the weak spot of the greenback on world markets this week, which was bolstered yesterday by US Federal Reserve Chair Jerome Powell’s tone implying that the spherical of price hikes is about to finish.
Swiss financial institution Lombard Odier mentioned, “The Israeli shekel will cope with continuing depreciating pressures in the coming quarters, and we see the shekel-dollar exchange rate in the NIS 3.75/$ range in the coming 12 months. While Israel’s external trade balance is positive, it might weaken in the future if the political uncertainty persists and result in a correction in the tech sector which will result in a reduction of foreign investment. These capital flows already showed signs of fading at the end of 2022, also due to the significant exports to the US which is 7% of Israel’s GDP, a slowdown in the US economy in the second half of the year could weigh on exports. Meanwhile, a stronger recovery in Chinese growth will probably not make up for the situation. While Israel’s exposure to China is notable (exports to China account for 4% of GDP), it is largely based on technological exports, which may be limited by the US (similar to the case of Taiwan ).”
Published by Globes, Israel enterprise information – en.globes.co.il – on March 23, 2023.
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