Why the Israeli shekel is the world's best performing currency against the US dollar this month

• The Israeli shekel rose 8.8% from a late October low, hitting 3.72 against the dollar.
• It's rebound was helped by the Bank of Israel, which unloaded $7.3 billion from its reserves last month.
• The rally was further driven by an unwinding in short bets against the currency.

The Israeli shekel topped foreign currency markets this month, jumping 8.8% against the dollar from a late-October low. 

Now trading at 3.72 per greenback, the shekel was able to surge past earlier losses stemming from the sudden eruption of the Israel-Hamas war. The conflict previously pulled the currency down to an 11-year low, before its fortunes began to reverse.