Most Asian currencies rose on Thursday, with the Japanese yen leading the gains as the dollar came under pressure from market expectations of an interest rate cut by the Federal Reserve in September.

The yen received support from increasing speculation about a rate hike by the Bank of Japan, after U.S. Treasury Secretary Scott Posen warned that the Bank of Japan is lagging in its efforts to curb inflation.

Wider Asian markets benefited from improved risk appetite and a weaker dollar, as markets estimated nearly a 100% likelihood that the Federal Reserve would cut interest rates in September.

However, larger risk moves were restrained due to some caution regarding U.S. tariffs, especially with India accelerating efforts to avoid high tariffs on its exports to the United States.