"I don’t see other countries showing growth rates like the rate shown by the Israeli economy," Deutsche Bank chief currency strategist Bilal Hafeez told "Globes" at the bank's conference in Tel Aviv. "The shekel will get much stronger against the dollar and euro over the coming year, and the Israeli economy will probably show impressive growth rates.
"The most significant thing is Bank of Israel intervention in the foreign currency market. We believe that Governor Stanley Fischer's interventions will diminish this year and that the shekel-dollar exchange rate will reach NIS 3.50/$ by year-end."
At the conference, Deutsche Bank executives outlined their predictions for economic and foreign currency trends.
Hafeez disclosed Deutsche Bank's position on the shekel, telling "Globes", "Deutsche Bank's strategy as a foreign institutional investor is based on the assumption that the shekel will strengthen against the dollar and euro. We're buying shekels and selling dollars and euros. That's also what we advise our customers. Over the next 12 months, the shekel will strengthen against both currencies and reach NIS 3.50/$. That's our position. We're giving stop-loss orders at NIS 3.95/$, which is what we also advise our customers."
Hafeez said that the dollar would not strengthen appreciably around the world this year, since the US Federal Reserve's policy to keep the interest rate at its current negligible level would continue for a long time, which will prevent the dollar growing too strong against the euro.
Published by Globes [online], Israel business news - www.globes-online.com - on March 8, 2010
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