SEOUL: The South Korean won was nearly flat early on Tuesday as investors took a breather before this week's US Federal Reserve policy meeting as well as the parliamentary hearings for the Bank of Korea's governor-nominee.
The local currency was quoted at 1,068.2 against the dollar as of 0217 GMT, down 0.1 percent from Monday's domestic close at 1,067.4.
Investors will zoom in on the Federal Open Market Committee meeting that concludes on Wednesday, at which it is expected to continue reducing its monthly bond purchases by $10 billion.
"The market has already priced in that the Fed's tapering will stop by year-end after monthly reductions of $10 billion," Kim Seung-hyun, an economist at Daishin Securities, said in a note to clients.
Kim said uncertainties in the market would be reduced should the Fed continue its tapering this week, reducing volatility.
Market participants will also be looking out for clues on South Korea's future monetary policy at the parliamentary hearings for Bank of Korea governor-nominee Lee Ju-yeol on Wednesday.
Lee, a former deputy governor at the central bank, has been perceived as hawkish by some investors and is expected to be questioned by lawmakers on key domestic issues like inflation and household debt.
The benchmark Korea Composite Stock Price Index edged up 0.3 percent.
March futures on three-year treasury bonds were unchanged at 106.02.
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