The Bank of Israel bought "hundreds of millions" of dollars of foreign currency, dealers said, after the shekel continued to strengthen.
The U.S. dollar tumbled against the safe-haven yen Friday amid uncertainty over the fallout from Britain's vote to exit the EU.
The British pound traded more than 1 percent lower after Mark Carney, the head of the Bank of England, made remarks about the U.K. economy following the Brexit vote.
The euro and sterling spiked higher, as markets regained some appetite for risk.
The U.S. dollar fell against the British pound and the euro as the market took a breather and potential profit-taking.
Sterling fell to a 31-year low against the dollar as a sell-off stemming from Britain's decision to quit the EU gathered pace.
Sterling hit a 2016 high and the euro surged against the dollar and yen after a series of late opinion polls favored Britain staying.
The dollar was broadly weaker on Wednesday as risk appetite returned to markets.
Sterling and the euro rose on the last day before Britain's referendum on EU membership, the pound trading just off its highest this year.
The dollar tumbled on as sterling surged more than 2 percent and the euro jumped after opinion polls swung in favor of remain.
Sterling rose as traders evaluated whether the killing of MP Jo Cox may alter the balance of opinion on Brexit.
Sterling rallied from a two-month low against the euro, extending gains after British police said British lawmaker Jo Cox died.
The dollar added to earlier losses on Wednesday after the Federal Reserve left interest rates unchanged, as was widely expected.
The yen surged to its strongest level against the euro in more than three years on Tuesday as the chances of UK voting next week to leave the EU grew.
The safe-haven yen firmed broadly on Monday, hitting a three-year peak against the euro and sterling and a six-week high versus the dollar.
Sterling fell to a two-month low against the U.S. dollar on Monday as concerns grew about the threat of the U.K. voting to leave the EU in 10 days' time.
The yen and Swiss franc rose as oil prices slid and bank shares led global equity markets lower, stoking a fresh wave of bids for low-risk assets.
A broad decline in commodity and stock prices in major world markets raised the yen on Thursday.
The dollar hit a five-week trough on Wednesday, hurt by waning expectations that the Federal Reserve will raise interest rates anytime soon.
The Australian dollar strengthened on Tuesday after the Reserve Bank of Australia kept interest rates on hold.