The U.S. dollar stayed weak on Thursday after falling sharply the day before. This came as the Federal Reserve gave a softer-than-expected update on future interest rates, which disappointed traders who were bracing for a more aggressive stance. Meanwhile, the Swiss franc gained strength after Switzerland’s central bank decided to keep interest rates unchanged.

While the dollar did get a slight boost due to a drop in Asian stock markets and U.S. futures—triggered by disappointing earnings from tech giant Oracle—this only slowed the dollar’s decline rather than reversing it. Investors are now worried that the high costs of building AI infrastructure might outweigh future profits, hurting big tech companies.

The euro rose to $1.1713, reaching its highest level in nearly two months, after jumping 0.6% the day before. The British pound held steady at $1.1338 following a 0.65% gain on Wednesday. The Japanese yen also gained against the dollar, with the greenback slipping 0.2% to 155.7 yen.

On Wednesday, the Federal Reserve cut interest rates by 25 basis points, a move that was widely expected. However, market reaction focused more on the Fed’s long-term outlook and internal voting than the rate cut itself. Only two members opposed the decision, and forecasts still include a rate cut in 2026.

Market experts noted that while investors were expecting a more aggressive tone from the Fed, Chair Jerome Powell appeared cautious about signaling any long-term pause in rate changes. Some traders had hoped for clearer guidance, especially after recent statements from central banks in Australia and Europe hinted at possible rate hikes.

Another factor pushing the dollar lower was increased demand for U.S. government bonds after the Fed announced plans to start buying short-term Treasury bills starting December 12. The goal is to improve market liquidity, with an initial purchase of about $40 billion.

In Switzerland, the franc gained ground after the Swiss National Bank kept interest rates at 0%. Officials said a recent trade deal with the U.S., which reduces tariffs on Swiss goods, has helped improve the economic outlook—even though inflation has been lower than expected. The dollar fell 0.46% against the franc, hitting 0.7963 francs—its lowest in three weeks. The euro also slipped 0.27% against the franc to 0.9331.

Although a strong franc puts pressure on inflation and exports, Swiss National Bank Chairman Martin Schlegel confirmed that moving to negative rates would be a last resort.

Elsewhere, the Australian dollar dropped after employment data showed a major decline in jobs for November—the worst in nine months.

In crypto markets, Bitcoin and Ether were hit hard by the broader tech selloff. Bitcoin briefly dipped below $90,000 before recovering slightly but was still down 2.4%. Ether fell over 4% to around $3,200.

Experts say that despite the Fed’s more cautious tone, markets are still adjusting from over-leveraging in October. As a result, investor reactions to economic signals are slower than usual. The rate cut had already been priced in, and ongoing uncertainty about global politics and economic conditions is keeping markets cautious.

Overall, while central banks are showing mixed signals globally, investors remain alert to inflation trends, tech sector performance, and shifting interest rate policies—all of which continue to influence currencies and crypto markets alike.