Israel's shekel has swung dramatically from the world's best to worst performing currency in days, easing pressure on the central bank. The shekel slumped 4% against the dollar this month, the worst performance out of more than 140 global currencies. This reversal comes after a 14-month rally that hurt the country's exporters.

In the preceding two months, the shekel had appreciated almost 12% to a three-decade high. That forced the Bank of Israel to buy dollars in foreign-exchange markets for the first time in five years while signaling potential monetary easing measures to curb the currency's strength.

The currency's decline reduces immediate pressure on policymakers to intervene further. The Bank of Israel now faces a more balanced position between supporting exporters and controlling inflation, though the rapid reversal suggests market volatility remains a key concern for the central bank.