Swiss bank Lombard Odier sees the shekel-dollar exchange rate at 3.75 NIS/$ over the next 12 months.
The shekel is strengthening today against the dollar and stabilizing against the euro after the US Federal Reserve yesterday raised the interest rate by 0.25% to 4.75%-5%. , at 3.614 NIS/$, and the rate of the shekel against the euro was down 0.07%, at 3.93 NIS/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate at 0.219% from Tuesday at 3.642 NIS/$, and the shekel-euro representative rate was set at 0.066% at 3.933 NIS/€.
The shekel has strengthened this week against the dollar after briefly touching 3.70 NIS/$ on Monday morning. This reflects dollar weakness in global markets this week, which was reinforced yesterday by the tone of US Federal Reserve Chairman Jerome Powell suggesting that the series of rate hikes is about to end.
Swiss bank Lombard Odier said: “The Israeli shekel will face continued depreciation pressures over the next few quarters, and we see the shekel-dollar exchange rate in the NIS/$3.75 range over the next 12 While Israel’s external trade balance is positive, it could weaken in the future if political uncertainty persists and lead to a correction in the technology sector which will result in a reduction in foreign investment. capital already showed signs of running out of steam at the end of 2022, also due to the large exports to the United States which represent 7% of Israel’s GDP, a slowdown in the American economy in the second half of the year could weigh on exports, while a stronger recovery in Chinese growth is unlikely to compensate for the situation. to China is notable (exports to China represent 4% of GDP), it is largely based on technological exports, which can be limited by the United States (as in the case of Taiwan). »
Published by Globes, Israel business news – en.globes.co.il – March 23, 2023.
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