The Indonesian rupiah strengthened on Wednesday, a day after the country's central bank held interest rates steady and unveiled measures to ease the liquidity crunch stemming from the coronavirus-induced economic stress.

The currency firmed 0.4% to hit a near four-week high. Bank Indonesia (BI) on Tuesday after market hours announced keeping the benchmark rate unchanged at 4.50% and said it is cutting reserve requirement ratio for commercial banks by 200 basis points, adding that these would help in freeing up about 117.8 trillion rupiah ($7.58 billion) in liquidity.

"This significantly enhances policy transmission and critically eases liquidity constraints under demand-constrained conditions and is thus well-suited to ease COVID stresses," Mizuho Bank analysts said.

Foreign selling hammered the rupiah this year, which has long been investors' favourite for its carry trade appeal. Benchmark Indonesian bond yields have risen since February, but DBS analysts expect them to "have the most room for catch-up once domestic COVID-19 fears fade."

Most other Asian currencies gained ground on Wednesday, buoyed by improving sentiment, as the region's top trade partner China showed signs of recovery and acted to cushion its economy by cutting key medium-term interest rates to a record low.

The Chinese yuan eased slightly after the Chinese central bank nudged its midpoint fixing to the weak side of analyst estimates. A slowdown in coronavirus infection rates at global hot spots and China logging a better-than-expected trade data on Tuesday supported buying as well.

The Singapore dollar lost 0.1% while the Indian rupee, which resumed trade after a holiday, firmed 0.3%. The Taiwan dollar, the Thai baht and the Malaysian ringgit firmed between 0.1% and 0.2%. South Korea's financial markets were closed for a public holiday.