SEOUL: The South Korean won advanced in early trade on Tuesday, poised to snap a six-day losing streak as dollar-selling by exporters triggered profit-taking on the US currency ahead of the Federal Reserve's policy meeting.
The local currency was quoted at 1,079.0 against the dollar as of 0230 GMT, up 0.45 percent from Monday's domestic closing level of 1,083.6 and on track for the biggest daily percentage gain since Jan. 2.
Dealers said exporters were offering a steady supply of dollars, pushing the dollar-won rate below the 1,080 mark for the first time since Friday in the absence of other major cues.
Investors will likely tread cautiously for the rest of the holiday-shortened week, with the Fed set to begin its two-day policy meeting later in the global day. The US central bank is widely expected to reduce its monthly bond purchases by another $10 billion.
Dealers say exporters may look to sell more dollars ahead of the Lunar New Year holidays. Wednesday will be the final trading day of the week for South Korean markets, which will reopen next Monday.
"If the dollar-won rate doesn't climb back above 1,080, there could be a rush of dollar-selling towards the market close," one local dealer said.
The benchmark Korea Composite Stock Price Index was up 0.1 percent at 1,911.43.
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