The dollar lost some steam on Thursday following yesterday’s FOMC minutes from the last policy meeting which were seen as dovish while U.S. President Donald Trump wishes to consider imposing new tariffs on imported cars.

The euro was weighed by concerns over economic slowdown in the currency bloc and political risks in Italy, trading near a six-month low against the dollar and a nine-month low versus the yen.

USD/TRY slipped from an all-time high of 4.9221 all the way to 4.5692 following an emergency monetary policy committee meeting on Wednesday. The central bank issued a rate hike from 13.5 to 16.5 percent following the meeting. USD/TRY is still up 17.1 percent with inflation rising almost 11 percent. Turkish President Erdogan has been vocally opposed to raising interest rates, but the move shows the central bank's willingness to abide by global market principals.

While the FOMC minutes showed most policymakers thought it likely another interest rate increase would be warranted -- in line with market expectations -- they also revealed the Fed would tolerate inflation rising above its goal for a time.

USD/JPY fell more than 0.3 percent and trades at 109.65 from 110.03 in early Asian trade, following a 0.73 percent fall the previous day, its biggest fall in nearly three months.

USD/CHF ticked 0.15 percent lower to 0.9925. It slipped to a three-week low of 0.9894 on Wednesday.

EUR/USD bounced back to 1.1733 after hitting a six-month low of 1.1676 on Wednesday but the common currency was held back by economic and political worries in Europe.