SEOUL: The South Korean won edged lower early on Wednesday, tracking the yuan's decline but trading in a relatively narrow band as investors opted for caution ahead of the US Federal Reserve's policy decision.
The local currency was quoted at 1,070.8 against the dollar as of 0259 GMT, compared with Tuesday's domestic close of 1,069.2, and extending its decline into a second day.
Dealers said the won was tracking the depreciation of the yuan, which fell more than 1 percent against the dollar in early trade. But the dollar met firm resistance above the 1,070 mark against the won as exporters sold the US currency.
"It will be difficult for the market to move away from the current trading levels of around 1,070," one currency dealer said.
Investors are also refraining from taking big bets ahead of the Fed's policy decision due later on Wednesday. The central bank is widely expected to announce an additional $10 billion reduction in its monthly bond purchases, and its forward guidance will be closely watched for cues on future monetary policy.
The benchmark Korea Composite Stock Price Index was down 0.04 percent at 1,939.45.
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