SEOUL: The South Korean won is set for a third day of losses on Wednesday, falling to its lowest in two weeks as offshore investors sold the won for the dollar ahead of the Federal Reserve's meeting next week.
The local currency was quoted at 1,068.0 against the dollar as of 0215 GMT, down 0.3 percent from Tuesday's domestic close at 1,065.3.
The won inched down as low as 1,070.2 shortly after trade commenced, its worst performance since Jan. 8, but kept above the 1,070 level until midday.
"Exporters have blocked the won's fall and investors are yet hesitant over the won going under 1,070," said a foreign bank dealer in Seoul.
The won's losses were also cut short after stronger-than-expected Australia inflation data boosted the Australian dollar against the US dollar on Wednesday.
Market participants said importers had started to weigh on the won just before trade closed on Tuesday.
Afterwards in offshore trade, foreigners continued the trend, snapping up the greenback on expectations the Federal Reserve will make further cuts to its stimulus at its policy meeting from Jan. 27-28.
The benchmark Korea Composite Stock Price Index was nearly flat.
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