The dollar, which has held above a two-year low hit on Thursday of 92.495, was down nearly 0.1% against a basket of currencies at 93.643, after shedding gains made in Asian trading.
Stocks sold off on Monday and the currency market saw "risk-off" moves, with the dollar index climbing to its highest in six-weeks.
The euro fell to a two-month low on Wednesday, the dollar edged up to $1.1671 per euro, its highest since July 27.
The dollar index fell 0.3% at 92.836. Markets are keen to see the Fed's economic projections, and particularly whether it spells out where it sees inflation headed and what exactly that means for interest rates.
The pound's recent recovery against a weaker dollar was interrupted on Thursday when the dollar strengthened following the US Federal Reserve meeting, while investors' attention turned to the Bank of England's policy meeting.
The dollar gave up gains made after the Federal Reserve upgraded its 2020 economic forecast this week to trade in negative territory on Thursday. It was last quoted at 92.923 against a basket of major currencies, on track for a 0.3% weekly loss.
The dollar traded at $1.1656 per euro on Thursday, just shy of a two-month high reached on Wednesday. The greenback held near a nine-week high against the Swiss franc at 0.9236, and also held on to gains made in the previous session against the Japanese currency, to stand at 105.45 yen.
The greenback gained about 0.6% on the risk-sensitive Australian dollar and the yen streaked ahead even further, gaining half a per cent on the dollar to a one-week high of 104.95, and rising more than 1% on the Aussie.
World stocks were on course to extend a five-day run of record highs on Thursday, while bitcoin took a breather after its latest surge and Russia’s markets