The U.S. dollar weakened against its major counterparts in Asian session on Thursday, as the Fed minutes indicated a persistent division on the policy-setting Federal Open Market Committee, with many Fed officials concerned about inflation.

Low inflation might also be a result of "developments that could prove more persistent," according to the minutes of the Fed's most recent meeting on Oct 31-Nov 1.

A number of officials are worried that a decline in longer-term inflation expectations would make it more challenging for the Committee to promote a return of inflation to 2 percent over the medium term.

Despite inflationary worries, the Fed signaled that a rate hike is "likely" in the near future.

At that meeting, the Fed held interest rates steady between 1% and 1.25%.

The currency fell on Wednesday, amid weak U.S. durable goods orders data as well as the release of Fed minutes hinting at caution over inflation.

The greenback weakened to 0.9809 against the Swiss franc, it lowest since October 20. If the greenback falls further, 0.97 is possibly seen as its next support level.

The greenback dropped to an 8-day low of 1.1838 against the euro, off its early high of 1.1813. Next likely support for the greenback is seen around the 1.21 region.

The greenback slipped to near a 6-week low of 1.3337 against the pound and held steady thereafter. Continuation of the greenback's downtrend may see it challenging support around the 1.36 mark.

The greenback retreated to 1.2696 against the loonie, 0.7623 against the aussie and 0.6885 against the kiwi, from its early highs of 1.2714, 0.7604 and 0.6866,respectively. On the downside, 1.25, 0.78 and 0.70 are possibly seen as the next support levels for the greenback against the loonie, the aussie and the kiwi, respectively.

The greenback pared gains to 111.22 against the Japanese yen, from a high of 111.38 hit at 10:15 pm ET. The currency had already set more than a 2-month low of 111.07 early in the Asian session. The greenback is seen finding support around the 110.00 mark.

Looking ahead, PMIs from major economies, U.K. preliminary GDP data for the third quarter and the European Central Bank's minutes of the October 25 and 26 meeting are due in the European session.

At 8:30 am ET, Canada retail sales for September are set for release.

The Swiss National Bank Chairman Thomas Jordan gives a speech titled "High current account surplus of Switzerland: consequences for the monetary policy of the SNB?" at the University of Basel at 11:30 am ET.

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