The dollar rallied against major currencies on Thursday after the Federal Reserve Bank's chief indicated he was open to further rate cuts to combat a downturn in the U.S. economy.

Global stocks rose on the news, as investors gained confidence to invest in riskier assets. Gold and oil, seen as hedges against inflation, were down.

The dollar is poised for its largest weekly gain since August against the euro. The dollar index, which measures the dollar against six major currencies, rose to 75.64.

The dollar was at $1.4684 per euro at 1:13 p.m. in New York, a gain of 1 percent from a week ago. The dollar rose to 110.70 yen per dollar.