Asian currencies weakened Thursday as the U.S. dollar strengthened following hawkish signals from Federal Reserve policymakers. The South Korean won and Indian rupee led declines, with the won's USD/KRW pair jumping 0.6% and the rupee's pair gaining 0.4%. Trading volumes remained subdued across parts of Asia due to Lunar New Year holidays.

Minutes from the Fed's latest meeting revealed officials were divided on the policy outlook, with several indicating interest rates might need to stay higher for longer. Some policymakers remained open to further rate hikes if inflation remains sticky. The minutes reinforced expectations that U.S. monetary policy will remain restrictive, pressuring higher-beta Asian currencies. Markets are now focused on U.S. personal consumption expenditures (PCE) price index data due Friday for clearer direction on the rate path.

The Australian dollar bucked the regional trend, gaining 0.2% after data showed Australia's unemployment rate held at 4.1% in January. The resilient jobs data reinforced the Reserve Bank of Australia's hawkish bias following its recent rate hike. Markets continue to price in additional rate hikes from the RBA this year, providing relative support to the Aussie dollar despite broader regional weakness.