USD/ILS: Shekel may be poised for a strong rebound by the end of Q1-2023 – Wells Fargo
|The Israeli Shekel has faced uncharacteristic depreciation pressure over the last few weeks. Looking ahead, economists at Wells Fargo expect ILS to enjoy considerable gains.
USD/ILS to move toward 3.40 by the end of Q1-2023
“Netanyahu defending BOI independence and the increasing likelihood of BOI FX intervention to support the Shekel reinforces our view that the Shekel is on the verge of a strong rebound back and can recover most of recent losses by the end of Q1-2023.”
“While the progress of Netanyahu's judicial reform proposal through parliament could potentially see some further depreciation in the very short-term, current USD/ILS levels are still attractive for investors to gain ILS exposure and for corporates to hedge ILS-denominated expenses.”
“We see merit in entering positions at current levels, and we believe a move toward 3.40 by the end of Q1-2023 is imminent.”
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