Following remarks made by Fed Chair Jerome Powell that suggested an imminent peak in US interest rates, the US dollar experienced a significant decline in early European trading on Thursday.

Wednesday's rate decision by the U.S. Federal Reserve was expected, and although Chair Jerome Powell hinted at the possibility of another rate hike, he did so in a less aggressive manner than the markets had anticipated by recognizing that monetary conditions have tightened significantly in recent months.

His remarks have been interpreted by traders as an indication that the Fed will likely drop rates by the middle of 2024, ending its current cycle of rate hikes.

His remarks have been interpreted by traders as an indication that the Fed will likely drop rates by the middle of 2024, ending its current cycle of rate hikes.

The dollar index that gauges the greenback versus its major pairs edged 0.4% lower at 106.290, continuing overnight dips.

EUR/USD added 0.3% to 1.0602, once more aided by the declining value of the dollar, ahead of the publication of October's German jobless figures and the manufacturing PMI figures for the entire eurozone.

GBP/USD added 0.1% to 1.2168, profiting from the depreciating value of the dollar, and it is generally anticipated that the central bank would maintain its base rate at its 15-year high, following the lead of the Fed and the ECB.

USD/JPY slumped by 0.3% to 150.49, the yen rose rapidly from a one-year low as officials in the government persisted in threatening to intervene in the currency markets.