After the first reading of the bill on judicial reform was passed in the Knesset this morning, Citi said it was going long on the US dollar- shekel, targeting NIS 3.95/$.
“The (Israeli) currency continues to remain under pressure from local political noise,” Citi strategists Louis Costa and Bhumika Gupta wrote in a client note, “Reuters” reports.
“The political situation seems likely to get more volatile in the coming weeks as judicial reforms head for a second reading in the parliament.”
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BoI Deputy Governor: Political uncertainty has hit shekel
Despite the 0.5% rate hike yesterday, the Bank of Israel set the shekel-dollar exchange rate up 2.414% at NIS 3.649/$ – the weakest the shekel has been against the US currency since March 2020 during the first lockdown in the Covid pandemic. The shekel-euro rate was set up 2.143% at NIS 3.889/€, and the shekel-sterling rate was set up 3.064% at NIS 4.417/£.
The shekel has lost over 5% in February but Citi sees it losing another 8% in the coming weeks.
Published by Globes, Israel business news – en.globes.co.il – on February 21, 2023.
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