TAIPEI, Taiwan -- The Indonesian rupiah hit a fresh seven-year low against the dollar on Tuesday, once again at the fore of declines in Asian currencies spurred by falling stock markets and increasing evidence pointing to a global recession.

The rupiah fell 2.9 percent to 12,050 to the US dollar, with some dealers expecting the currency to weaken towards 12,100 in the coming week due to market worries over foreign fund outflows from the country's financial market.

The South Korean won fell to a three-week closing low, while the Taiwan dollar declined to a two-week intraday trough as more key economies, such as Japan and the euro zone, slipped into a recession.

"It's mainly the bearish global market hitting the rupiah. Stocks all around are falling and market sentiment is quite weak," a dealer in Indonesia said.

"Indonesia's GDP figures pressured the rupiah, but the overall impact was limited," the dealer said.

Indonesia's central bank has been intervening in markets to defend its falling currency, which has fallen 21 percent this year. On Tuesday, the central bank said it will not let the rupiah hit "irrational levels."

On Monday, Indonesia, Southeast Asia's biggest economy, reported third quarter growth of 6.1 percent, easing from the second quarter, mainly because exports slowed.

"We think financial turmoil associated with the rupiah's weakness will slow fourth quarter growth," ING said in a report.

Economies in emerging Asia, such as South Korea and Taiwan, are largely powered by exports and a global downturn will likely sap demand for the region's produce, such as electronics gadgets, cars and textiles.

Japan's recession could be longer than previously expected and governments around the world are doing everything to try and boost domestic consumption, with Taiwan offering to dole out shopping vouchers to its citizens.

The Korean won ended 2.7 percent lower at 1,447.9/9.1 per dollar, the Taiwan dollar hit a three-week intraday low of 33.290, while the Singapore dollar lost 0.2 percent to trade at 1.5261, hovering at an over one-year low.