Losses continued for the US Dollar on Thursday after the Federal Reserve announced what many believe to be the final rate hike.

The Fed increased interest rates by 25 basis points on Wednesday, as forecast, its 11th increase out of the last 12 meetings.

Even though Fed Chair Jerome Powell didn't rule out another rise in September, traders were seemingly unconvinced, and the greenback extended Wednesday's 0.3% decline after the central bank meeting.

"The market considers that it is likely the series of rate hikes we've had are over now," according to Jane Foley, head of FX strategy at Rabobank.

The Dollar index – measuring the currency against six main rivals – was down 0.4% at the time of writing at 100.66.

"(The) US is closer to the end of the hiking cycle than its peers. A dovish pivot from the Fed will likely exert downward pressure on the US Dollar in the medium term," said Emin Hajiyev, senior economist at Insight Investment.

Next up is the European Central Bank, with investors predicting the bank will hike rates by 25 basis points at Thursday's meeting. The focus will be on forward guidance and forecasts for September, the Reuters report adds.

Before the decision, the single currency rose 0.4% to $1.1128.

"The market has been positioned for the ECB to hike in September," Foley said.

"If the probability of a September move is even slightly diminished relative to what the market had been expecting, the Euro could be a little less robust."

In Japan, the central bank will announce its monetary policy decision on Friday and is expected to maintain its ultra-loose policy approach. The Yen was up 0.2% against the Dollar at 139.95 at the time of writing.

In addition, the Pound reached a one-week high of $1.2985 earlier in the session and was last 0.3% up. The Bank of England is forecast to increase its rate for the 14th straight meeting next week.

Elsewhere, the Australian Dollar rose nearly 1% to a one-week high of $0.6821, whilst the New Zealand Dollar was up 0.7% at $0.6255 after having previously risen over 1% to a one-week high of $0.6274.