The greenback strengthened on Thursday even though US PPI for May slowed after Fed followed hawkish stance at the end of its meeting.

Thursday's data revealed an unexpected decline in U.S. producer prices for May. The headline producer price index (PPI) decreased by 0.2% last month, following an unrevised 0.5% increase in April. Core prices remained unchanged, after a 0.5% rise in the previous month.

This followed Wednesday's release of the U.S. consumer price index (CPI) for May, which was weaker than economists had predicted and caused a significant sell-off in the greenback.

The U.S. dollar bounced back after Federal Reserve officials unexpectedly predicted on Wednesday that there would be only one interest rate cut this year, possibly delaying the start of cuts until as late as December.

The dollar index thar gauges the greenback versus its major pairs added 0.23% at 104.93. It hit a four-week peak of 105.46 on Tuesday but fell by up to 1% following Wednesday's CPI data release.

Traders had scaled back expectations of a September rate cut by the Fed following the May employment report, which indicated stronger-than-expected job growth alongside higher-than-anticipated wage increases.

EUR/USD dipped 0.19% at $1.0786. On Tuesday, it dropped to $1.07195, marking its lowest point since May 2, before surging to $1.08523 on Wednesday amid a weakening dollar.

USD/JPY edged up by 0.29% at 157.16 yen.