The U.S. dollar dropped on Thursday after the Federal Reserve cut its interest rate by 50 basis points and revised its monetary policy outlook, with the Australian dollar and the Norwegian crown outperforming their peers.

The US Dollar receives downward pressure as US Treasury yields depreciate amid uncertainty over the scale of the Fed rate cut. According to the CME FedWatch Tool, markets anticipate 41.0% odds of a 25 basis point (bps) rate cut by the Fed at its September meeting. The likelihood of a 50 bps rate cut has increased to 59.0%, up from 50.0% a day ago.

“The USD may receive a small, temporary bump if the Federal Open Market Committee delivers a 25bp cut,” said Carol Kong, a currency strategist at the Commonwealth Bank of Australia (CBA). “The USD’s reaction to a larger 50bp cut will depend on the FOMC’s communication.”