The U.S. dollar gained against all of its major counterparts on Thursday, following a decision by the Bank of England (BoE) to keep the interest rates unchanged and Moody’s downgrade of Spain’s debt rating by one notch.

The greenback was up against the euro, with EUR/USD falling 0.64 percent to hit 1.3813 during the early New York trading.

Earlier in the day, Moody’s downgraded Spain’s debt by one notch to Aa2, citing concerns over the cost of restructuring of the country’s banking sector and also the government’s ability to reach its borrowing reduction targets.

The dollar was up against the pound, with GBP/USD losing 0.42 percent to hit 1.6135 during the European early afternoon trade. The Bank of England (BoE) on Thursday kept interest rates unchanged at 0.5 percent, judging that economic recovery is too weak to increase the borrowing costs.

The greenback was also up against the yen and Swiss franc, with USD/JPY rising 0.30 percent to 82.98 and USD/CHF climbing 0.45 percent to hit 0.9338.

Earlier Thursday, the cabinet office data showed that Japan’s economy contracted more than previously estimated.

Meanwhile, the Canadian dollar fell to C$0.9732 to the US dollar from C$0.9715, following a report on Canada's trade surplus which narrowed to C$116 million in January from a revised C$1.7 billion surplus in December.

The dollar index, which measures the performance of the greenback against a basket of six other major currencies, was up 0.49 percent.

The Australian dollar fell against the greenback on Thursday as the number of employed people unexpectedly fell in February though the unemployment rate was unchanged at 5 percent. Aussie slipped to two-week low at 1.0033 dollars from 1.0131 traded on Wednesday. Kiwi also dropped sharply to 0.7349 against the dollar following a cut in interest rates by 50 bp by the Reserve Bank of New Zealand. The markets had expected the central bank to cut the rates by 25 bp.