Most Asian regional currencies pulled back from early highs on Thursday, taking their cue from the Japanese yen's failure to hold on to gains versus the US dollar.
The Singapore dollar was off a 10-day high but managed to hold to the strong side of 1.7100, a level it broke in offshore trade on Wednesday.
Stock market losses pulled the South Korean won back from an over one-week high of 1,149.0 to a dollar and tipped the Taiwan dollar a touch lower.
The US dollar was in sight of Wednesday's three-month low against the euro but edged higher against the yen as investors were cautious ahead of Japan's upper house elections due on Sunday.
The won was further weighed down after the Bank of Korea lowered its economic growth forecast for the second half of 2004 to 5.0 percent year-on-year from 5.6 percent.
As expected, the central bank left key rates unchanged at a record low of 3.75 percent. But it warned of a risk of higher inflation from factors such as higher oil prices.
An index of consumer sentiment fell to an eight-month low in June, reinforcing concerns about an extended slump in spending.
"This weakness underlines the lopsided growth in the Korean economy with exports continuing to carry most of the burden," Bank of America's strategist M.R. Madhavan wrote in a client note.
Madhavan said with domestic demand weak, South Korean authorities would likely prefer to choke off imported inflation through currency appreciation.
In Singapore, dealers said they suspected the Monetary Authority had helped push the overnight interbank rates higher in recent days to help push the Singapore dollar higher.
The central bank said in April it would allow a gradual strengthening in the currency on a trade weighted basis. The MAS uses the currency rather than interest rates as a policy tool.
Analysts said despite that shift in policy and strong economic data, the Singapore dollar had mostly stayed on the weak side of the central bank's undisclosed trade-weighted policy band.
Concerns about fresh outbreaks of bird flu in two farms north of Bangkok, weighed down the Thai baht.
The Indonesian rupiah edged lower towards 9,000 per dollar as traders booked profits on gains following Monday's smooth and peaceful presidential election.