Shekel weakens sharply against US dollar

Published date14 September 2022
Publication titleGlobes (Rishon LeZion, Israel)
Leader Capital Markets sees the shekel continuing to depreciate over the next few months. The firm's chief economist Yonatan Katz writes: "It looks as though the markets will continue to be nervous in the near future, as they digest the prospect of the US Federal Reserve's interest rate rising above 4% in early 2023 and remaining at that level for an extended period. We assume continued depreciation of the shekel in the coming months. Consequently, we are revising our inflation forecast for the next twelve months from 2.5% to 2.7%."

The tone in the local foreign exchange market is set by the hedging activity of local financial institutions. When global securities markets fall (the S&P 500 Index fell 4.32%...

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