Bank of America says the Israeli shekel's months-long rally is likely to reverse, forecasting the dollar will climb back toward NIS 3.14. The call comes as the strong currency squeezes exporters and high-tech firms, even as it benefits consumers and cools inflation.
Bank of America published a note Wednesday evening predicting the Israeli shekel's rally is over, with a target of 3.14 shekels per dollar. The call follows one of the strongest shekel moves in decades, driven by capital inflows and relative security calm. The bank argues that a reversal in U.S. equity markets could quickly transmit weakness to the shekel, given the tight correlation with portfolio flows. The forecast aligns with the desk's prior reporting on the shekel's volatility around the symbolic 3-shekel level, though the current rate remains below that threshold.
No prior Zioneer coverage has addressed the Bank of America call directly. The context items track the shekel's fluctuations through June — strengthening past the 3.0 mark, weakening back above it, then rallying again — but this is the first major Wall Street sell-side call predicting a reversal of the entire trend.
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