USD weakened against its major rivals in the European session on Thursday, as  investors digested the 2020 U.S. election results, while awaiting the Fed's policy decision.

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.95% to 92.52.

The results of the U.S. elections suggested that a “blue wave” would not materialize. Before the elections, Wall Street expected that Joe Biden would be a clear winner and the Democrats would turn over the Senate, while keeping control over the House, which would allow them full legislative control. However, the election results signal the prospect of a divided Congress, denting expectations of a massive stimulus bill. As a result, investors reappraised their outlook for the path of the economy and interest rates in the U.S. to reflect expectations of slower growth and more stimulus from the Fed.

Some investors believe that today's Fed policy statement might hint at more stimulus, though major policy changes are not expected.