The dollar fell on Thursday after the Federal Reserve delivered what some expected to be its last rate hike, while market focus shifted across the Atlantic to the European Central Bank's (ECB) rate decision later in the day.

The Fed on Wednesday raised interest rates by a quarter of a percentage point, as expected, marking the central bank's 11th rate increase in its last 12 meetings.

While Fed Chair Jerome Powell left the door open to another hike in September, traders were unconvinced, sending the U.S. dollar sliding in Asia trade on Thursday.

That pushed the risk-sensitive Australian and New Zealand dollars higher, as the prospect that the global monetary tightening cycle could soon be ending boosted sentiment.

The New Zealand dollar was last 0.8% higher at $0.6259, having earlier surged more than 1% to a one-week high of $0.6274.

The Aussie similarly jumped nearly 1% to a one-week top of $0.68195.

The dollar index fell 0.3% to 100.81, while sterling touched a one-week high of $1.29735 earlier in the session.

The British pound was last 0.19% higher at $1.2964.

The ECB comes under the spotlight next, with investors expecting the central bank to similarly raise rates by 25 bps at the conclusion of its monetary policy meeting later on Thursday, with focus on its forward guidance.

Ahead of the decision, the euro gained 0.18% to $1.11035.

Elsewhere, the Japanese yen remained under pressure, though was last roughly 0.3% higher against the U.S. dollar at 139.84.

The Bank of Japan (BOJ) announces its monetary policy decision on Friday, and is seen maintaining its ultra-loose policy stance.

Source : Reuters