SEOUL: The South Korean won edged lower in early domestic trade on Tuesday, as some investors opted to cash out from the currency's recent gains ahead of US Federal Reserve chief Janet Yellen's congressional testimony.
The local currency was quoted at 1,072.8 against the dollar as of 0230 GMT, compared with Monday's domestic closing level of 1,071.2.
Investors will closely watch Yellen's remarks in Washington later in the global day for hints on the central bank's next move. Though Yellen is expected to reiterate the Fed's intent to continued reducing bond purchases, recent signs of soft jobs growth and uncertainty over the US government borrowing limit are raising concerns about the country's growth trajectory.
"At this point the dollar-won rate looks firmly supported at 1,070, and domestic supply-and-demand dynamics appear balanced at the moment," one currency dealer said.
Another dealer said that the dollar-won rate should trade within a relatively narrow band between 1,070 and 1,074 for the rest of the day, noting that offshore investors' trading activity was also mixed.
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