The Chinese yuan eased after the central bank set a weaker midpoint, putting further pressure on regional units.
The rupee lost up to 0.8 percent to 60.23 per dollar, its weakest since May 6, after data showing India's wholesale prices-based inflation in May accelerated to a five-month high of 6.01 percent.
Indonesia's rupiah slid as local shares fell 0.8 percent, underperforming regional peers. The currency's non-deliverable forwards broadly weakened on worries about the impact of higher oil prices on a current account deficit and inflation.
Offshore funds sold the South Korean won.
Sunni insurgents seized a mainly ethnic Turkmen city in northwestern Iraq on Sunday after heavy fighting, raising concerns over disruption to oil exports from OPEC's second-largest producer.
Asian shares fell as geopolitical tensions impelled investors to safer assets.