Atrade: Shekel to strengthen in 2013

The shekel-dollar exchange rate will fall to NIS 3.71/$; if it falls through this level, the Bank of Israel could intervene to avoid losing control of the exchange rate.

Online forex trader Atrade Ltd. says in its review for 2013 that the shekel will strengthen against the dollar next year, because of more interest rate cuts. It predicts that the shekel-dollar exchange rate will fall to NIS 3.71/$, and if it falls through this level, the Bank of Israel could intervene to avoid losing control of the exchange rate.

Atrade also predicts that the dollar will weaken in international markets during 2013. "Investors will prefer exposure to assets with higher returns, and they will abandon the greenback, which investors consider to be the best safe haven," it says. "Even if the US gets into trouble over the fiscal cliff, there will be no stampede to the dollar, and investors will prefer to channel their resources to gold, which they prefer over the dollar in times of US economic uncertainty."

Atrade says that the only thing that can support the dollar is a strong US recovery, which will eliminate the need for stimulus plans. "In this case, the dollar can be expected to strengthen strongly, especially if there is a further retreat in the European and Chinese economies," it says.

Published by Globes [online], Israel business news - www.globes-online.com - on December 27, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018