The US dollar fell on Thursday, extending the earlier session's decline, post the Federal Reserve announced a halt in its aggressive cycle following its most recent interest rate hike.

The dollar index that gauges the greenback versus its major pairs slumped by 0.2% at 100.14, post slipping over 0.6% in the earlier session.

The Federal Reserve of the United States hiked interest rates by 25 basis points on Wednesday, as generally predicted, and, more importantly, no longer "projects" more rate hikes to manage inflation.

EUR/USD edged up by 0.2% to 1.1075, slightly below its previous one-year high of 1.1096, according to Deutsche Bank strategists, the currency is anticipated to rise to its highest level since 2021.

GBP/USD ticked up by 0.1% at 1.2575, not far from the highest level of 1.2594.

USD/JPY slipped by 0.3% to 134.29, where the yen has benefited from dropping US government yields as well as increased safe haven demand in the aftermath of mounting US banking fears.