The U.S. dollar declined in late trading on Tuesday after the U.S. central bank's interest-rate cut.

The U.S. Federal Reserve on Tuesday lowered the target range for the federal funds rate by 50 basis points to 1 to 1.25 percent amid COVID-19 concerns.

In a surprise announcement, the Fed said that "in light of these risks and in support of achieving its maximum employment and price stability goals," the Federal Open Market Committee, the Fed's policy-setting body, decided to cut its key interest rate by 0.5 percentage point.

The dollar index, which measures the greenback against six major peers, was down 0.20 percent at 97.1600 in late trading.

In late New York trading, the euro rose to 1.1175 dollars from 1.1161 dollars in the previous session, and the British pound was up to 1.2811 dollars from 1.2776 U.S. dollars in the previous session. The Australian dollar rose to 0.6595 dollar from 0.6531 dollar.

The U.S. dollar bought 107.23 Japanese yen, lower than 107.84 Japanese yen of the previous session. The U.S. dollar fell to 0.9570 Swiss franc from 0.9572 Swiss franc, and it was up to 1.3373 Canadian dollars from 1.3353 Canadian dollars.