The 20-year peak reached by the US dollar is fading from view as the currency king continues to slide lower as the market heads into the end of the week.
The European market session saw the dollar index trade lower at 108.50 against most major currencies, further away from the high of 110.78 it hit on Wednesday.
Taking advantage of the weakening of the US dollar was the euro which surged higher in addition to receiving support from the decision of the European Central Bank (ECB) policy meeting which increased interest rates by 75 basis points.
ECB President Christine Lagarde has hinted at continuing to raise interest rates but ruled out a further three-quarters of a basis point increase at the next meeting.
The head of the European central bank will speak once in the European session today in a press conference at the Eurogroup Meeting which is expected to reiterate the ECB's stance to lower inflation.
Meanwhile, the pound currency also recorded an increase by rising further from its 37-year low.
UK Prime Minister Liz Truss announced the government would introduce an 'energy price guarantee' for two years and explained that households would pay no more than £2,500 a year for energy bills.
On the other hand, commodity currencies including the Aussie, New Zealand and Canadian dollars also bounced higher following the weakness of the US dollar as investors' focus was also directed to the publication of Canadian employment data in the New York session.
The yen also recovered from a 24-year low against the US dollar, defying repeated statements from Japanese policymakers that they would continue to scrutinize currency market movements before acting.
