SINGAPORE -- Asian currencies lost further ground on Friday as investors dumped riskier assets amid economic jitters, with the South Korean won the top loser on concerns about dollar-funding shortages.

The won fell 1.6 percent against the dollar to its lowest domestic close in three months.

The currency hit an intraday low of 1,514.9 per dollar on worries the country's banks may struggle to access overseas capital markets to refinance offshore debt falling due.

The ringgit fell 0.3 percent to 3.669 per dollar, its lowest since Oct. 2006, while the Singapore dollar lost 0.7 percent to 1.5393 per US dollar, its lowest since August
2007.

The ringgit and the Singapore dollar, along with the Taiwan dollar and the Thai baht, are more vulnerable than other Asian units to the sharp global economic downturn because their economies have a higher dependence on exports, analysts say.

Singapore and Taiwan have already slipped into recession.

"The Singapore dollar is hit by risk aversion," said Enrico Tanuwidjaja, currency strategist at OCBC Bank.

"The ringgit is tailgating Singapore dollar's movement rather closely and a bleak equity outlook in the region coupled with corporates' dollar demand might keep dollar/ringgit well supported ahead of the weekend," he said.

The Taiwan dollar hit a fresh 5-1/2-year low at 34.83 per US dollar as investors sold local stocks amid concerns about the economy, which data showed this week shrank in the fourth quarter by more than 8.0 percent over a year earlier.

Asian stocks slid on Friday following a dip in US stocks on Thursday, with the MSCI index of Asia-Pacific stocks outside Japan losing 2.7 percent as of 0537 GMT.

The Thai baht fell as much as 0.7 percent to 35.73 per dollar, its lowest since Dec. 4, after the central bank chief predicted the currency would weaken.

"Everyone now wants to buy dollars as the market expects the baht to weaken," said a trader in Bangkok.

Bank of Thailand Governor Tarisa Watanagase told a seminar on Thursday that the baht was expected to weaken further this year due to dollar strength.

"If the firm dollar trend persists, the baht may fall to 36 next week," said a second trader.

The central bank has intervened in recent sessions by buying dollars in the market to push the baht lower to help local exporters, but such intervention was not spotted on Friday.

The baht has fallen less than 3.0 percent against the dollar so far this year, holding up relatively well compared to the likes of South Korean won, which has shed more than 16 percent, and the Indonesian rupiah, which is down about 8.0 percent.

The Philippine peso fell half of a percent to 48.22 per dollar, its lowest since Dec. 10, in tandem with falling local shares.

Traders said the central bank briefly stepped into the market at the opening to defend the key 48 level.