Thailand's central bank is highly likely to raise its key policy rate at its August meeting, an official said on Friday, as its economic recovery gains more traction and as other central banks tighten monetary policy to contain inflation.

The dollar sank to a fresh six-week low to the yen on Monday as markets continued to wager that the Federal Reserve has less tightening to do with the U.S. economy at risk of recession.

Oil prices dropped on Monday, as weak manufacturing data from China and Japan for July weighed on the outlook for demand, while investors braced for this week's meeting of officials from OPEC and other top producers on supply adjustments.

China’s blue-chip index led gains among Asian stocks on Monday, recovering from its lowest level since mid-June as data showed service sector activity in the country continued to expand despite a slowdown in manufacturing.

Oil prices gained about $1 in early trade on Friday, lifted by supply concerns and a weaker U.S. dollar as attention turns to what OPEC and allies including Russia agree at a meeting next week marking the end of their 2020 output reduction pact.

The dollar languished near a six-week low to the yen amid a sharp retreat in Treasury yields after investors interpreted a shrinking U.S. economy as one more reason for the Federal Reserve to ease its foot off the tightening pedal.