Dollar at lowest level in four years… won-dollar rate plunges into the 1,430-won range

Trump: "A weak dollar is fine… look at the business we’re doing"

The won-dollar exchange rate plunged by more than 10 won in early trading on the 28th as a weaker dollar coincided with a stronger yen. With the global value of the dollar sliding to its lowest level since 2022, comments by U.S. President Donald Trump signaling acceptance of a weaker dollar added to downward pressure.

In Seoul’s FX market, the won-dollar rate was quoted at 1,434.10 won as of 9:40 a.m., down 11.1 won from the previous session’s onshore closing level (3:30 p.m.). It opened at 1,431.0 won, down 15.2 won from the prior day, and has been fluctuating in the low 1,430s. It is the lowest level so far this year.

The won-dollar rate had turned higher the previous day for the first time in five sessions on renewed pressure over U.S. tariffs, but reversed to a decline again overnight as the dollar weakened. A firmer yen and concerns over a potential U.S. federal government shutdown pushed the global value of the dollar down to its lowest level since 2022.

Trump’s remarks overnight, in which he said he did not think the dollar had fallen much—suggesting tolerance for a weaker dollar—also weighed on the greenback.

On the dollar’s decline, he said he thought it was "great," adding, "Look at the business we’re doing. The dollar is doing very well."

The dollar index, which measures the dollar’s value against a basket of six major currencies, fell from the low 97s the previous afternoon to the high 95s, marking its lowest level in about four years since early 2022.

The yen has extended its strengthening trend amid wariness of intervention by U.S. and Japanese authorities. The yen-dollar rate, which had been nearing 160 last week, fell to the 152 level. The won-yen cross rate rose 3.76 won from the previous afternoon’s reference rate to 939.24 won per 100 yen.

Noh Jeong-dong, Hankyung.com reporter dong2@hankyung.com