The U.S. dollar lost ground against its major counterparts in the Asian session on Thursday, after the U.S. Federal Reserve left interest rates unchanged as expected and indicated that it will be patient regarding further rate hikes amid a slowing economy.

The Fed voted unanimously to maintain the target range for the federal funds rate at 2.25 to 2.50 percent.

The accompanying statement included some notable changes from last month, including dropping a reference to the Fed's plan for further gradual rate increases.

Instead, the central bank said it "will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate."

Fed Chairman Jerome Powell noted in his press conference that the "case for raising rates has weakened somewhat."

Investors also digested data showing that China's manufacturing activity contracted for a second straight month in January.

The United States and China launched high-level trade talks in Washington on Wednesday, just two days after the U.S. Justice Department unveiled a raft of charges against Chinese telecommunications company Huawei.

The greenback that closed Wednesday's trading at 1.3148 against the loonie edged down to 1.3123. The next possible support for the greenback is seen around the 1.30 level.

The greenback declined to near a 2-month low of 0.6924 against the kiwi and held steady thereafter. The pair closed Wednesday's trading at 0.6891. If the greenback falls further, 0.72 is possibly seen as its next support level.

The greenback dropped to 0.7272 against the aussie, down from yesterday's closing value of 0.7247. The greenback is seen finding support around the 0.74 level.

The greenback fell to a 2-day low of 0.9922 against the Swiss franc and moved sideways in later part of the session. The greenback is poised to challenge support around the 0.97 level.

The greenback reached as low as 1.3137 against the pound, compared to yesterday's closing quote of 1.3116. On the downside, 1.34 is likely seen as the next support for the greenback.

The U.S. currency slipped to a 2-week low of 108.70 against the yen, from a high of 109.07 hit at 5:45 pm ET. The greenback is likely to test support around the 106.00 mark, if it drops again.

Data from the Ministry of Economy, Trade and Industry showed that Japan industrial production fell a seasonally adjusted 0.1 percent on month in December.

That exceeded expectations for a decline of 0.5 percent following the 1.0 percent drop in November.

Having appreciated to 1.1478 against the euro at 5:00 pm ET, the greenback reversed direction and dropped to near a 3-week low of 1.1509. Next key support for the greenback is possibly seen around the 1.16 mark.

Looking ahead, German jobless rate for January, Eurozone jobless rate for December and GDP data for the fourth quarter are scheduled for release in the European session.

Canada GDP data for November, U.S. weekly jobless claims for the week ended January 26 and chicago PMI for January are set for release in the New York session.

Deutsche Bundesbank President Jens Weidmann will speak in Mannheim at 11:00 am ET.

The Bank of Canada Deputy Governor Carolyn Wilkins will deliver a speech about the labor market and monetary policy at the Toronto Region Board of Trade at 12:30 pm ET.

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