The yen fell against the dollar after the Japanese ruling coalition's victory boosted hopes for more monetary stimulus.
The dollar traded in a back-and-forth range after the U.S. June jobs report easily beat expectations.
Sterling rebounded on Thursday after falling two straight days.
The safe-haven yen hit a 3-1/2 year high against sterling on fears about the impact of Brexit.
The Japanese yen rose almost 1 percent against the euro and dollar while sterling fell to new long-term lows.
The Aussie recovered from a wobbly start as commodities rose on expectations that central banks are likely to provide more stimulus.
The Bank of Israel bought "hundreds of millions" of dollars of foreign currency, dealers said, after the shekel continued to strengthen.
Australia faces political uncertainties such as a credit rating downgrade and possible policy paralysis, explains TD Securities's Annette Beacher.
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.