The greenback slumped on Thursday as the possibility of Federal Reserve rate cuts seemed more imminent, while the euro declined in anticipation of the upcoming European Central Bank meeting.

The dollar index that gauges the greenback versus its major pairs dipped 0.15 at 103.220, hovering around the lowest level in one month.

Thursday witnessed a decline in the dollar following the commencement of Federal Reserve Chief Powell's two-day testimony before Congress. Traders incorporated expectations of U.S. interest rates declining this year, despite some unexpected increases in inflation.

On Wednesday, Federal Reserve Chair Jerome Powell stated that considering the anticipated overall trajectory of the economy, rate cuts are likely to be suitable later this year. This decision hinges on officials gaining increased confidence in the gradual slowdown of inflation.

EUR/USD slipped to 1.0895, following the previously released figures on Thursday that demonstrated that the German industrial orders slipped beyond predictions in January.

GBP/USD edged up by 0.1% at 1.2737, hovering around one-month peak following the surge of British House prices that ticked up for five consecutive months in Feb, ticking up by 0.4% for January based on figures from mortgage lender Halifax.

USD/JPY edged down by 0.9% to 147.97, the yen experienced a surge fueled by increasing speculation that the Bank of Japan might terminate negative interest rates in the near future.