Asia FX falls, After hawkish Fed minutes

The dollar held recent gains on Thursday while most Asian currencies declined as the minutes of the Federal Reserve's June meeting revealed that authorities were in favor of further rate increases this year.

According to the Fed minutes, nearly all of the board members supported more rate increases in the coming months, citing high inflation and an overheated labour market.

The minutes increased investor demand for the dollar and drove them away from risky Asian markets, raising expectations for a raise at the Fed's late-July meeting.

After increasing by 0.5% overnight, the dollar index and dollar index futures marginally climbed in Asian trade, while most Asian currencies continued to decline. Key nonfarm payrolls statistics, coming on Friday, were also under the spotlight for additional hints about the Fed.

The Chinese yuan was slightly weaker against the dollar on Thursday after suffering significant losses in the previous session.

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