The euro fell to a session low against the dollar and the yen after a newspaper said Greece had asked to restructure its debt at a recent meeting of European financial officials.
The single currency later pared its losses after Greece denied the newspaper report.
Emerging Asian currencies may succumb to more profit taking before the Good Friday holiday, especially if the euro eases further, analysts said.
"We can see more short covering in USD/Asia though. EUR is looking tired abstracting from today's volatility, so I wouldn't be surprised to see more profit taking, particularly ahead of a shortened trading week," said Jonathan Cavenagh, currency strategist at Westpac in Singapore.
Still, the regional currencies are expected to remain in a bullish trend as central banks are likely to keep tightening policy to fight inflation, analysts and dealers said.
"As long as the euro's fall is not on extreme risk aversion that hurts all markets, I don't see why Asian currencies cannot continue to do well. I think the bullish trend can and should be maintained as inflation data from Friday shows why that is," said Sacha Tihanyi, a senior currency strategist at Scotia Capital in Hong Kong.
"The Thai baht is due for some strength and a break of 30.00 (per dollar). Positioning for this ahead of a hawkish Bank of Thailand monetary policy decision would be wise," he added.
The baht edged up 0.1 percent to 30.10 from the close of April 12. The country's financial markets were closed from Wednesday to Friday for holidays.
The Bank of Thailand is set to hold a policy meeting this Wednesday.
With many regional policymakers now using their currencies to contain rising prices, investors are adding the Chinese yuan as well as the Singapore dollar and have turned bullish on the won, a Reuters poll showed.
PIMCO said it is looking for opportunities to buy quasi-sovereign bonds in South Korea and India, adding risk-return is attractive in those credits.
"We look for avenues to 'shake hands with governments' in countries where credit fundamentals are continuing on an upward trajectory," the world's biggest bond fund manager says.
The asset manager said the yuan and the won remained "fundamentally undervalued", despite their recent gains.
Further downward pressure on emerging Asian currencies will provide investors with chances to buy them on dips, dealers said.
"Anything from here to 1.4250 (of euro/dollar), the market will buy on dips as the global money is heading to Asia," said a Kuala Lumpur-based dealer
WON
Some market players are taking advantage of the fall in the won against the yen during the broader bout of cross/yen liquidation to buy the South Korean currency versus the yen, partly to take advantage of wide interest rate differentials.
One trader at a European bank said medium-term option structures selling the yen against the won have been popular in the past few weeks and in decent size.
"It's a longer-term view," the Singapore-based trader said.
Earlier, the won weakened to as soft as 13.1604 from a high of 12.6579 hit during the yen carry trade's sudden revival on April 7.
The won's value against the yen was too weak given economic fundamentals of South Korea, a senior local bank dealer in Seoul said.
A break back above 13.3000/3500 of the yen/won would threaten to reverse the downtrend in place.
After hitting a bottom on March 17 and following the Group of Seven rich countries' intervention to weaken the yen, the won jumped 16 percent in just three weak.
Other cross/yen pairs have given up some of their big gains during that stretch.
Among the pairs retreating further are GBP/JPY and TWD/JPY.
SINGAPORE DOLLAR
The Singapore dollar shed up to 0.3 percent against the US dollar as investors covered short positions in the greenback.
The currency fell in early trade but looked ready to recoup its losses as interbank speculators chased it, betting on further gains.
But the slide in the euro after the news about Greece prompted further short covering.
The Singapore dollar hit a record high versus the greenback on Friday as the country is expected to keep fighting inflation with a stronger currency
RUPIAH
The rupiah lost as much as 0.2 percent to 8,673 against the dollar as investors covered dollar-short positions.
The Indonesian currency may head to 8,692 per dollar, the weakest level of April 1, a day before it gapped up, if investors cover short-positions further to fill the gap.