On the 28th, the won-dollar exchange rate against the U.S. dollar closed at 1,422.5 won, down 23.7 won from the previous day. The dollar weakened as concerns grew over a U.S. federal government shutdown. It is the first time in about three months that the won-dollar exchange rate has fallen into the 1,420-won range.
That day in the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,431 won, down 15.2 won from the previous day. At one point, it fell to as low as 1,415.4 won, but it pared losses before the close of weekly transactions (9 a.m.–3:30 p.m.). Even so, it fell by more than 20 won from the previous day and closed in the 1,420-won range.
The decline in the won-dollar exchange rate was driven by the dollar's weakness after the U.S. Democratic Party said it would not pass a budget package that includes expenditures for the Department of Homeland Security, including U.S. Immigration and Customs Enforcement (ICE). After a series of incidents in which U.S. citizens were killed by ICE gunfire, Democratic Sen. Amy Klobuchar told local media, "We will not give a single penny more to ICE or the Border Patrol."
In addition, U.S. President Donald Trump, responding on the 27th (local time) to a reporter's question asking, "Aren't you worried about the dollar's value falling," said, "No. I think it's good," which also weighed on the dollar.
Min Kyung-won of Woori Bank said, "The diagnosis that a (U.S.) federal government shutdown could resume has emerged as a key topic, spurring bets on a weaker dollar," while noting, "Real demand-based bargain buying within the region supports the lower bound of the won-dollar exchange rate."