Asian currencies weakened on Tuesday after traders interpreted comments on inflation by the US Federal Reserve chairman as a signal that US rates would go still higher.
The Singapore dollar fell as much as 0.4 percent to 1.5793 per dollar. The Thai baht lost as much as a quarter of a percent to 38.19 per dollar and the Philippine peso lost as much as 0.3 percent to 52.89 per dollar.
Financial markets in South Korea were closed for a holiday.
The Fed chairman, Ben Bernanke, said on Monday the central bank must remain vigilant to ensure that inflation stays under control even as growth in the world's largest economy slowed.
Analysts said the comments increased the chances that the central bank would raise its benchmark rate for the 17th straight time to 5.25 percent when it meets at the end of the month.
US stocks fell after the comments, dragging Asian stocks lower on Tuesday.
"Bernanke's overnight comments proved to be a worst-case scenario for equity markets, as he pointed to both slowing output and inflation signals that do not correspond in his eyes with longer-term price stability," Shahab Jalinoos, a currency strategist at ABN Amro Bank, said in a report.
Jalinoos said financial markets had raised the probability of a 25 basis-point rate hike to 75 percent from about 50 percent following Bernanke's comments.
"This is bad news for emerging markets, as broadly speaking the market is still long risky assets and the outflow from local bond and equity markets is now likely to gather pace," he said.
He said Indian stocks and the rupee were likely to be hit as well as the Indonesian rupiah, since a significant part of Indonesian equity holdings by foreign investors have not been repatriated despite a sell-off in May.
"The Philippines also looks a shaky story, and we suspect a test of dollar/Philippine peso 53.0 is likely this week," Jalinoos said.
India's key stock index fell below 10,000 for the second time since February dragging the rupee lower by more than half a percent to 45.99 per dollar. The rupee has lost 2.3 percent in the past month and is Asia's worst performing currency this year.
The pressure on the rupiah, together with a rise in Indonesia's inflation rate in May to 15.6 percent, led the Indonesian central bank to hold off cutting its benchmark interest rate from 12.5 percent at a meeting on Tuesday.
The Indonesian rupiah was down as much as half a percent at 9,340 with dealers citing foreign banks and state-run banks buying dollars. The currency slumped more than 5 percent in May taking the brunt of an emerging-market downturn. Swiss bank UBS estimated that some $3.5 billion in foreign funds are still parked in Indonesian bonds and stocks leaving the currency vulnerable to another emerging market downturn.
"The risk on the rupiah is therefore still significant if risk aversion spikes higher," UBS said in a report.
The Thai baht could get some boost from a likely rise in interest rates on Wednesday, dealers in Bangkok said.
Bank of Thailand Governor Pridiyathorn Devakula told reporters on Tuesday that the inflation rate was likely to start easing from July and that interest rates were likely to exceed the inflation rate - 6.2 percent in May - by September.
"From what he said, it looks like they'll raise rates tomorrow," said a Bangkok-based dealer. "If oil prices keep rising we may see another rate increase by the end of the year. That's bullish for the baht."
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