The Israeli Shekel has been subject to some unexpected depreciation over the past few weeks, leaving many investors and economists feeling uncertain. However, economists at Wells Fargo have suggested that the Shekel is on the brink of a strong recovery, and that USD/ILS is likely to move toward 3.40 by the end of the first quarter of 2023.
The economists believe that the Shekel is well-positioned for a rebound, particularly due to Prime Minister Netanyahu’s commitment to defending the independence of the Bank of Israel (BOI). This, along with the increasing likelihood of BOI FX intervention, is likely to support the Shekel’s recovery.
While some further depreciation may occur in the short-term due to Netanyahu’s judicial reform proposal, the current USD/ILS levels are considered attractive for investors who are looking to gain exposure to the Shekel and for corporates who are looking to hedge their ILS-denominated expenses.
The economists at Wells Fargo believe that there is merit in entering positions at the current levels, and that a move toward 3.40 by the end of the first quarter of 2023 is likely.
The depreciation of the Shekel has been a cause for concern among investors and economists, but optimism is slowly returning. The commitment of Prime Minister Netanyahu to defend the Bank of Israel and the increasing likelihood of FX intervention have been seen as positive developments, and the current USD/ILS levels are considered attractive for investors and corporates alike.
The economists at Wells Fargo are confident that the Shekel is on the brink of a strong recovery, and that a move toward 3.40 by the end of the first quarter of 2023 is imminent. They believe that there is merit in entering positions at the current levels, and that investors and corporates should take advantage of the attractive USD/ILS levels.
The depreciation of the Shekel has been a worrying trend, but the commitment of Prime Minister Netanyahu and the increasing likelihood of FX intervention have been seen as positive steps towards restoring the Shekel’s strength. The economists at Wells Fargo are confident that the Shekel is on the brink of a strong recovery, and that a move toward 3.40 by the end of the first quarter of 2023 is likely.
Investors and corporates have been encouraged to take advantage of the current attractive USD/ILS levels, and to enter positions at the current levels. The economists at Wells Fargo have suggested that a move toward 3.40 by the end of the first quarter of 2023 is imminent, and that this could be a great opportunity for investors and corporates to gain exposure to the Shekel and to hedge their ILS-denominated expenses.
Overall, the depreciation of the Shekel has been a worrying trend, but the commitment of Prime Minister Netanyahu and the increasing likelihood of FX intervention have been seen as positive steps towards restoring the Shekel’s strength. The economists at Wells Fargo are confident that the Shekel is on the brink of a strong recovery, and that a move toward 3.40 by the end of the first quarter of 2023 is likely. Investors and corporates have been encouraged to take advantage of the current attractive USD/ILS levels, and to enter positions at the current levels in order to gain exposure to the Shekel and to hedge their ILS-denominated expenses.
