BENGALURU: Most emerging Asian currencies fell on Wednesday as caution prevailed ahead of a highly awaited policy decision by the US Federal Reserve, while weak manufacturing activity data in China continued to weigh on regional market sentiment.

The South Korean won fell 0.5% to 1358.7 per dollar, snapping a three-day winning streak.

The Seoul main share index, however, edged 1% higher after data showed annual exports in October rose for the first time in 13 months, indicating “global demand conditions are holding up well,” ING analysts said in a note.

The Indonesian rupiah also fell 0.4% on Wednesday, pushing the central bank to intervene in the foreign exchange market to stablise the currency. Stocks in Jakarta dropped 1.2% for the day.

The Southeast Asian nation’s inflation in October rose in line with expectations and was within the central bank’s target range, data showed on Wednesday.

Analysts at Barclays said the rupiah was weaker since Bank Indonesia unexpectedly hiked rates on Oct. 19, adding that the central bank could ramp up its pace of rate tightening at its next meeting if the rupiah continues to fall.

Investors will now look towards the Fed’s policy decision later in the day, with the central bank expected to keep interest rates on hold.

While the chances of another US rate hike this year are low, a rate reduction would only be in sight during the second half of next year or later, a Reuters Poll found.

“While market consensus is for the Fed to stand pat on the policy rate, forward guidance and the accompanying messaging should be key,” Maybank analysts said in a note.

Meanwhile, data showing weak manufacturing activity numbers in China continued to weigh on markets in Asia, which have significant trade and investment linkages with the world’s second-largest economy.

The baht slipped 0.4%, while stocks in Bangkok pared earlier losses, gaining 0.2%.