The Dollar was on track for its longest losing run in two and a half years on Thursday as the Federal Reserve signalled an end to its rate hiking cycle could be near.
The US central bank increased its benchmark funds rate by 25 basis points on Wednesday, as predicted, yet dropped rhetoric such as "ongoing increases" being required and instead opted for "some additional" rises.
Futures indicate an approximate 50% chance of another 25-basis point hike, whereas, in Europe, markets see around 50 basis points of additional tightening, Reuters reports.
This gap led to the Euro hitting a seven-week high of $1.0930 after rising for six consecutive sessions.
The change in tone by the Federal Reserve means there is less chance markets' concern will return over robust economic data pushing rates higher, according to NatWest Markets head of G10 FX strategy, Brian Daingerfield.
"From the foreign exchange perspective, we think that argues for further Dollar weakness as the ceiling for the Fed cycle has clearly come down," he stated.
The Dollar index – measuring the greenback against six rivals – was down 0.2% at the time of writing, on course for its six consecutive daily declines, the longest streak since September 2021.
Elsewhere, the Swiss National Bank hiked its policy rate by 50 basis points as the central bank aimed to find the balance between fighting inflation with worries over turmoil in the financial markets.
In addition, Switzerland's central bank said the measures unveiled by authorities last weekend in regard to Credit Suisse have "put a halt to the crisis."
The Swiss Franc edged up following the decision, and at the time of writing was 0.2% higher against the greenback at 0.9155.
"We're seeing a stronger Franc, not only because of the hike but also because they effectively said they put a halt to the crisis in the banking sector," said Danske Bank FX analyst Kirstine Kundby-Nielsen.
Furthermore, the Sterling remained close to a seven-week high as Wednesday's data showed a surprise increase in UK inflation.
The Bank of England hiked rates by a further quarter of a percentage point on Thursday and said the surge in UK inflation is forecast to cool quicker than before.