The South Korean won, Thai baht and Indian rupee fell on Friday as the US dollar powered ahead against global currencies, including the Japanese yen, on expectations the United States will keep raising rates.
The South Korean won fell as much as half a percent to 1,039.9 per dollar while the Thai baht hit a four-month low of 41.44 per dollar. The Indian rupee lost a third of a percent to a 14-month low of 46.175 per dollar.
The dollar's rise, fuelled by the prospects of sustained increases in US interest rates contrasting with a one-time rise in European Central Bank's key rate on Thursday and near-zero rates in Japan, dragged the yen close to a 2-1/2-year low of 120.66 against the dollar.
Dealers across the region had a common refrain - the dollar's interest-rate advantage made it too strong to be countered by generally upbeat economic data and rising interest rates in most parts of Asia.
In South Korea, where the economy has displayed signs of a growth pick up, the won's recent gains - particularly against the Japanese yen - made it vulnerable to intervention from the authorities, dealers said.
The won hit a fresh seven-year high of 8.5603 against the yen on Thursday, sparking talk the Bank of Korea might act to stem the gains.
"They continue to warn against the appreciation of the won against the yen. But they haven't intervened so far," said Roh Sang Chil, a currency trader at Kookmin Bank in Seoul.
"They hesitate to intervene in the markets these days. They don't like it. But yen-won is getting so low. Below 8.5 against the yen and below 1,030 against the dollar is a good level to intervene."
The won's losses were checked by a return of foreign investors to the domestic stock market, helping drive the benchmark stock index to a record high
Foreign investors turned net buyers of Korean stocks on Friday after being net sellers in the previous five sessions.
The Thai baht and Indian rupee were also hurt by deteriorating trade balances.
Data this week showed Thailand's trade balance swung to a deficit in October on unexpectedly weak exports, while the current account dropped almost 90 percent from September levels.
Thailand is expected to report this year its first annual current account deficit since 1998.
The key stock index has lost more than 7 percent in the past two months and hit a four-month low on Friday dragging the baht past key levels.
"The 41.30 was a key support for the baht. Once that broke, it triggered stop losses for many banks," a Bangkok dealer said.
The Indonesian rupiah gained half a percent to a two-week high against the dollar on Friday, edging past the 10,000 mark, after President Susilo Bambang Yudhoyono disclosed plans to change his economic team.
The rupiah was quoted as low as 9,993 per dollar minutes after the president was quoted by local television saying that he would change his economic management team and that former finance minister Boediono could be a part of that team.
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