Risk appetite declined after the International Monetary Fund on Tuesday downgraded the global growth rate for the year to 3.3 percent, the slowest expansion since 2016.

"Asian currencies are reflecting the fact that the growth outlook has been marked down again and that could have a bit of negative impact," said Singapore-based Wei Liang Chang, FX strategist at Mizuho Bank.

The Malaysian ringgit softened as much as 0.3 percent to 4.119 per dollar, hitting a more than 2-month low.

Norway last week said its sovereign wealth fund would cut emerging market bonds including Malaysia's from the benchmark index it tracks, spreading caution among foreign investors.

China's factory-gate inflation picked up for the first time in nine months in March, in a fresh sign that government policy support may be starting to revitalise domestic demand.

The Chinese yuan rose slightly to 6.714 per dollar.

However, markets remained cautious as they await further economic cues from China, with March trade figures due on Friday and first-quarter gross domestic product due next week.

The Korean won declined 0.1 percent, while the Thai baht and the Taiwan dollar edged lower.

The Philippine peso traded sideways as data showed the country's trade deficit narrowed in February from the previous month, however exports contracted for a fourth straight month while imports grew at a slower rate, reflecting easing growth.

Meanwhile, India began the first phase of its elections on Thurday, a process that will last until May 19, with Prime Minister Narendra Modi entering the race as the frontrunner.

The rupee firmed 0.2 percent to 69.0 per dollar.

SINGAPORE DOLLAR INCHES DOWN AHEAD OF MAS DECISION

The dollar slipped 0.1 percent ahead of the Monetary Authority of Singapore's (MAS) first semi-annual policy meeting on Friday.

Singapore's central bank is likely to keep its monetary policy stance on hold, according to a Reuters poll, as inflation eases and the growth outlook for the export-reliant economy dims.

"Since the Singapore dollar is trading at the top end of the band there is very limited room for it to strengthen further, so we are seeing a bit of pause and less of volatility in the dollar," Chang said.

MAS can adjust policy by changing the appreciation rate, mid-point, or width of the Singapore dollar's policy band. The bank increased the slope of the policy band at both of its 2018 meetings, its first tightening move in six years.

The following table shows rates for Asian currencies against the dollar at 0503 GMT.