The dollar was subdued on Thursday as deepening political turmoil in USA weighed in on the greenback and United States treasury yields.

The dollar was also down after the US Economic Data revealed weak US inflation which took its toll on the currency.

The dollar index, which tracks the U.S. currency against a basket of six rivals, was slightly lower on the day at 96.915 though above its overnight low of 96.323 plumbed after downbeat economic figures.

Against its Japanese counterpart, the dollar shrugged off earlier losses and was flat at 109.54 yen, above Wednesday's eight-week low of 108.81 yen.

The euro was also unchanged at $1.1217, below a seven-month peak of $1.1296 scaled overnight.

The Fed raised interest rates a quarter percentage point to a target range of 1.00 percent to 1.25 percent on Wednesday, as expected, and gave its first clear outline on its plan to reduce its $4.2-trillion bond portfolio.

Against its Japanese counterpart, the dollar shrugged off earlier losses and was flat at 109.54 yen, above Wednesday's eight-week low of 108.81 yen.

The Australia dollar rose 0.2 percent to $0.7605, moving back toward its 2-1/2-month high of $0.7636 hit on Wednesday, after a better-than-forecast employment report.

But the New Zealand dollar skidded 0.8 percent to $0.7213, moving away from the previous session's four-month high of $0.7319.

Data showed that New Zealand's economy grew 0.5 percent in the three months to March, well below the central bank's forecast for 0.9 percent growth.