"Ongoing political developments across the Middle East and North Africa are relevant for Israel and need to be monitored closely. Also, Iran's nuclear program poses additional longer-term risks," cautions Goldman Sachs in a new review on the shekel. However, the investment bank remains "constructive" about the shekel, as it shows steady appreciation on the back of widening demand and interest rate differentials, a more hawkish shift in monetary policy, and a solid external position, particularly over the next six months.
Goldman Sachs revised its forecasts for the shekel's exchange rates against the dollar and euro. It predicts that the shekel-dollar exchange rate will be NIS 3.50/$ (down from NIS 3.52/$) in three months, NIS 3.37/$ (up from NIS 3.35/$) in six months, and NIS 3.30/$ (up from NIS 3.25/$) in twelve months.
Goldman Sachs predicts that the Bank of Israel will raise the interest rate from the current 3% to 3.25% at the end of June, 4.25% at the end of 2011, and 5.25% in 2012.
It predicts that the shekel-euro exchange rate will be NIS 5.08/€ in three months, NIS 5.06/€ in six months, and NIS 5.12/€ in twelve months.
No comments:
Post a Comment