Forecasts for USD to ILS
Recent market updates and forecasts suggest a mixed outlook for the USD to ILS exchange rate. FX analysts anticipate a potential reversal of the US dollar's strength in 2023, as the Fed's interest rate hikes cycle is expected to come to an end. This could weaken the USD against the ILS. However, the Israeli shekel has been under pressure due to the escalating conflict in the Middle East, causing it to plummet to its lowest level against the USD in almost eight years.
The significant cross-border attack by Hamas militants in October, followed by Israeli airstrikes targeting Hamas officials, further deteriorated the shekel's value. This situation led the Bank of Israel to make their first-ever foreign exchange sale to maintain financial stability amidst the ongoing conflict. It is worth noting that the USD to ILS exchange rate has shown volatility, trading within a range of 9.7% over the past three months.
Considering these factors, it is difficult to make a definitive forecast for the USD to ILS exchange rate. The eventual reversal of the USD's strength and the ongoing conflict in the Middle East both have the potential to influence the exchange rate. It will be important to closely monitor developments in the region and the actions of central banks to assess the future direction of the USD to ILS exchange rate.
