BENGALURU: Most emerging Asian currencies gained ground against a weakening greenback on Thursday and stocks also rose, buoyed by subdued inflation data and resulting market expectations of at least two Federal Reserve rate cuts this year.

The US dollar tumbled to multi-month lows following the release of overnight data revealing that US consumer prices in April had plummeted to their lowest level in three years. The dollar index was last down 0.2%.

The data spurred anticipation of a pair of rate cuts by the Federal Reserve, potentially commencing in September.

In Asia, the South Korean won spearheaded currency gains, jumping 1.7% to its highest level since April 4.

One of the worst regional performers this year, the Thai baht firmed 1% to a two-month high and was on course for its third consecutive session of gains.

Malaysia’s ringgit jumped to its highest level in more than two months and was last up 0.5%. Taiwan’s dollar also advanced 0.6%, touching a 5-week high.

The Indonesian rupiah strengthened as much as 0.6% to 15,930 per dollar, hitting its highest level since April 5.

In Philippines, the Bangko Sentral ng Pilipinas is slated to meet at 0700 GMT to announce its interest rate decision, with expectations for the overnight borrowing rate to remain unchanged at 6.50%. The peso was trading 0.3% higher.