The U.S. dollar hit a four-month low after the Federal Reserve's signal that its interest-rate hike cycle is likely over, with potential rate cuts on the horizon in 2024. Fed Chair Jerome Powell emphasized a dovish stance during the Federal Open Market Committee meeting, contributing to the dollar's decline. Meanwhile, European markets experienced notable movements. The Norwegian crown strengthened after an unexpected rate hike, while the Swiss franc remained steady as the Swiss National Bank held rates. The Bank of England and European Central Bank were set to announce their policies later in the day.

Market dynamics shifted, with the U.S. dollar index slipping to 102.42, the lowest since mid-August. Markets are now pricing in an 85% chance of a rate cut in March, up from 40% the previous day. The SNB maintained rates, and the Norwegian crown rose following a surprise rate increase by the Norges bank.