USD/ILS continued to fall to a new low of 3.083 on Monday before bouncing back to the 3.10 area. In the near-term, economists at Credit Suisse expect USD/ILS to trade in a tight range of 3.07-3.14

A case for USD/ILS to fall to the 3.00-3.05 in coming months

“We expect USD/ILS to trade in a tight range of 3.07-3.14 in the short run as the Bank of Israel’s FX intervention limits the room for additional USD/ILS downside after a sizable decline in the recent two weeks.”

“We see scope for a break to the 3.00-3.05 area in coming months if inflation remains above target and US equities continue to gain.”