As traders processed Fed’s comments ahead of next week's significant inflation data release, the U.S. dollar declined further on Thursday.

The dollar index that gauges the US dollar versus its major pairs dipped 0.1% at 103.140.

After Fed Chair Jerome Powell reiterated that a process of disinflation was under way earlier in the week and chose not to firmly oppose predictions for cutting interest rates in the wake of the unexpectedly positive U.S. jobs report, the index slightly declined.

It is widely anticipated that the rate will tick up by 50 bps to 3.0%, but as the governor and deputy are both new to their positions, it is still unclear which course they will take.

EUR/USD traded 0.3% higher at 1.0741, buoyed by from expectations of further interest rate increases by the ECB as long as German inflation remained strong.

GBP/USD soared by 0.3% at 1.2104.

USD/JPY dipped 0.3% to 131.01.