The U.S. dollar maintained most of its gains Thursday after minutes from the Federal Reserve's latest meeting suggested interest rates could remain higher for longer. The DXY index, which tracks the greenback against a basket of six currencies, traded 0.1% lower at 97.535 after jumping 0.6% overnight.

The Fed minutes revealed officials were divided on the policy outlook, with several indicating rates might need to stay elevated and some open to further hikes if inflation remains sticky. This reinforced expectations that U.S. monetary policy will remain relatively restrictive. "Our takeaway is that the emphasis will now shift from the labor market back to the inflation readings," said analysts at ING, noting that inflation data needs to fall to validate the two rate cuts still priced into money markets this year.

In currency markets, the euro slipped 0.1% to 1.1800 after taking a hit following the FOMC minutes and reports that European Central Bank President Christine Lagarde plans to leave before her term ends in October 2026. The British pound fell 0.1% to 1.3498, on track for weekly losses of around 1% after weak inflation data pointed to potential rate cuts by the Bank of England next month.