On the 28th, the won-dollar exchange rate against the U.S. dollar opened at 1,431 won, down 15.2 won from the previous day. It is interpreted as being influenced by U.S. President Donald Trump indicating he does not mind a weaker dollar. When the dollar's value falls, the won's relative value rises (a decline in the won-dollar exchange rate).
On the 27th (local time), at an event in Iowa, President Trump answered a question asking, "Aren't you worried about the dollar's value falling?" by saying, "No. I think it's good." Trump, who has promoted the strong-dollar principle that "a strong dollar serves the national interest," signaled a preference for a weaker dollar. Accordingly, the dollar index on the ICE futures exchange, which reflects the value of the dollar against six major currencies, fell 1.2% from the previous day to 95.86. This is the lowest level in four months since September last year.
In addition, the increased likelihood of a U.S. federal government shutdown also acted to depress the dollar's value. After U.S. citizen Alex Jeffrey Preti, 37, died in Minneapolis, Minnesota, in a shooting by a federal immigration enforcement agent, the Democratic Party said it would block a bipartisan deal that includes funding for Immigration and Customs Enforcement (ICE). Reuters, citing a market strategist, reported, "As the U.S. government heads toward another shutdown, policy uncertainty is surging."
Min Kyung-won, a Woori Bank researcher, said, "Overnight, factors favorable to the won-dollar exchange rate were confirmed simultaneously, including concerns about a federal government shutdown and President Trump's remarks accepting a weaker dollar."