LONDON, Dec 14 Reuters The dollar dropped to a fresh fourmonth low on Thursday after the Federal Reserve indicated that its interestrate hike cycle has ended and that lower borrowing costs are coming in 2024.

On a busy day for policy announcements in Europe, the Norwegian crown strengthened after a rate hike, while the Swiss franc was little changed after the Swiss National Bank held rates. The Bank of England and European Central Bank announce policy later in the day.

Fed Chair Jerome Powell said at Wednesday39;s Federal Open Market Committee FOMC meeting that the historic tightening of monetary policy is likely over, with a discussion of cuts in borrowing costs coming into view. Policymakers were nearly unanimous in their projections that borrowing costs would fall in 2024.

Every vehicle of Fed communication the statement, the dots, and Powell39;s press conference was unambiguously dovish, said RBC strategist Blake Gwinn.

This shift was perhaps most obvious when Powell admitted that the committee discussed the appropriate timing of cuts at the meeting.

The U.S. dollar index , which measures the greenback against a basket of currencies, slipped as far as 102.42, its lowest since midAugust. It was last down 0.3 at 102.57.

Markets are now pricing a more than 85 chance of a rate cut in March, according to CME FedWatch tool, compared with 40 a day before. Traders are pricing in a oneinfive chance that the Fed cuts rates next month.

The SNB kicked off Europe39;s…