Published online by Cambridge University Press: 23 April 2014
We study the dynamics of iterated function systems generated by a pair of circle diffeomorphisms close to rotations in the $C^{1+\text{bv}}$-topology. We characterize the obstruction to minimality and describe the limit set. In particular, there are no invariant minimal Cantor sets, which can be seen as a Denjoy/Duminy type theorem for iterated systems on the circle.