Goldman Sees 8% Risk Premium in Shekel, Warns on Short-Term Pain

Analysts at Goldman Sachs Group Inc. are reluctant to call the worst is over for the shekel after a “significant” risk premium built up in the Israeli currency as a result of domestic political turmoil.

The currency’s close correlation with global technology stocks began to break in late January, a deviation that’s continued despite the central bank’s larger-than-forecast hike to interest rates this month.