On Thursday, the dollar reached new highs against a number of other currencies and was at its best level against the yen since early November as the U.S. Federal Reserve adopted a severely hawkish stance after keeping interest rates unchanged.

At its monetary policy meeting on Wednesday, the Fed held interest rates constant at a range of 5.25% to 5.50%, which was in line with market expectations.

However, the U.S. central bank hardened an aggressive monetary policy position that its members are becoming more confident may be successful in bringing down inflation without seriously harming the economy or causing significant job losses.

The dollar index that gauges the greenback versus its major pairs edged up at 105.68, its highest level since March,

EUR/USD steadied at $1.0635 post plunging at six-month low of $1.0617.

GBP/USD traded at $1.2319, barely above the recent lowest level touched in four months, ahead of BOE’s meeting.

USD/JPY traded close to 148.39 per dollar post almost hitting the lowest level in 10 months at 148.47 earlier on Thursday.