On Thursday, the U.S. dollar slipped a little as investors considered the prospect that the Federal Reserve would hike interest rates more than anticipated.

The dollar originally declined as a result of the Fed's statement's indications of upcoming lesser hikes, but it later recovered strength after Chair Jerome Powell stated that the fight against inflation will necessitate higher borrowing costs.

"Incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected," Powell said. "It is very premature to be thinking about pausing... we have a ways to go."

The Fed hiked its benchmark funds rate by 75 basis points (bps) to 3.75-4 percent on Wednesday, as predicted.

Powell's hawkish stance shattered hopes of a shift to a less aggressive attitude, sending the dollar to a week high of $0.9810 per euro in early Asia trade. However, the dollar lost speed throughout the day and was last trading at $0.983.

The U.S. dollar index slipped 0.214 percent to 111.880 after reaching a session high of 112.19, its highest level in seven days.

Meanwhile, gold prices rose on Wednesday, aided by a weaker dollar.

Spot gold rose 0.1% to $1,649.00 per ounce, while U.S. gold futures climbed 0.1% to $1,651.70.

The dollar index was down 0.1% against its peers, making gold more affordable to foreign investors.

Meanwhile, private payrolls in the U.S. climbed more than predicted in October, demonstrating labor market resiliency and implying that the Fed may remain active.

The non-farm payrolls report for the United States is also due on Friday, which could provide further clarity on the Fed's rate-hike path.

According to CME Group's FedWatch tool, traders are split on whether the Fed will raise interest rates by 50 basis points or 75 basis points in December.

"If we do get any sort of story for dollar weakness over that 50-basis-point hint from the Fed, then it shouldn't be too hard for gold to get back up to $1,670, $1,680 even over the coming sessions," said City Index analyst Matt Simpson.

Spot silver lost 0.1% of its value to $19.64 an ounce among other precious metals on Wednesday after reaching a three-week high on Tuesday.

While palladium slid 0.9% to $1,864.00, platinum increased about 1% to $951.75.