The U.S. dollar declined on Thursday as investors continued to digest the latest Federal Reserve minutes.

The dollar index, which measures the greenback against six major peers, was down 0.25 percent to 93.772 in late trading.

The Fed is expected to raise interest rate "soon," if economic outlook was in line with expectation of Fed officials, the minutes for the central bank's latest policy meeting showed on Wednesday, in line with market estimates.

However, the minutes also showed that the central bank would tolerate inflation rising above its goal for some time.

Some Fed officials considered "a temporary period of inflation modestly above 2 percent would be consistent with the Committee's symmetric inflation objective," it said.

Analysts said the relatively dovish minutes signaled that the Fed may not raise rates as aggressively this year as market expected.

In late New York trading, the euro was up to 1.1727 U.S. dollars from 1.1700 dollars in the previous session, and the British pound was up to 1.3385 dollars from 1.3351 U.S. dollars in the previous session. The Australian dollar was up to 0.7577 dollar from 0.7563 dollar.

The U.S. dollar bought 109.30 Japanese yen, lower than 110.08 Japanese yen of the previous session. The U.S. dollar was down to 0.9915 Swiss franc from 0.9962 Swiss franc, and it rose to 1.2889 Canadian dollars from 1.2836 Canadian dollars.