SEOUL: The South Korean won eased slightly against the dollar on Wednesday morning, and looks set to post a fifth day of losses after stronger-than-expected US inflation data underpinned the greenback.
The currency was quoted at 1,022.9 versus the dollar as of 0232 GMT, down 0.1 percent from Tuesday's onshore close at 1,021.9.
A fifth consecutive day of declines will mark the longest losing streak since in mid-January.
"There is some talk of offshore funds purchasing the dollar, but demand for the won by tech companies and exporters is limiting further losses," a currency dealer at a commercial bank said.
US consumer price index rose 0.4 percent in May, data showed on Tuesday, the biggest increase in more than a year, bolstering expectation the US Federal Reserve might raise interest rates sooner than expected.
A two-day policy meeting by the Fed which ends later on Wednesday is widely expected to unwind another $10 billion from its monthly bond purchases. The focus will be on Fed Chair Janet Yellen's press conference and on any firm clues on the interest rate outlook.
The Korea Composite Stock Price Index (KOSPI) was down 0.4 percent at 1,994.33 points as of 0232 GMT.
"Offshore investors are on wait-and-see mode prior to the Fed meeting outcome," said Kim Yong-goo, an analyst at Samsung Securities.
Foreign investors positioned as net sellers near mid-session, offloading 17 billion won ($16.7 million) worth of KOSPI shares along with a net 61 billion won of sales by domestic institutional investors.
Hyundai Motor Co slipped 1.1 percent following the biggest daily percentage gain in a month, while affiliate Kia Motors Corp declined 1.2 percent.
Some of the defensives were also chased by investors. South Korea's largest mobile carrier SK Telecom Co Ltd rose 1.1 percent and state-run utility company Korea Electric Power Corp added 1.7 percent.
Meanwhile, September futures on three-year treasury bonds ticked up 0.02 point to 106.22. June futures on three-year treasury bonds expired on Tuesday, and September futures will serve as the lead futures contract.
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