Societe Generale: Shekel a safe haven

The bank says any weakness because of the tension with Syria is a buying opportunity.

The shekel is a safe haven among emerging market currencies, and any weakness because of the tension with Syria represents a buying opportunity, according to Société Générale.

In a note to customers, Société Générale's global head of emerging markets strategy Benoit Anne wrote last week that the shekel offered defensive quality, and that it was therefore one of the only emerging market currencies that was a safe haven in the current challenging global environment.

Besides the performance of the currency during the current stand-off between the US and Syria, Anne also cites the higher than expected preliminary growth figures for the first quarter, and his expectation that Israel's economy will grow by 3.5% in 2014, as well as the assumption that interest rates in Israel will not fall to the levels prevailing in the major economies such as the US and the euro block.

Published by Globes [online], Israel business news - www.globes-online.com - on September 8, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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