Won-Dollar Exchange Rate Plunges 15 Won... Drops to 1,430 Level on Weaker Dollar (Update)

Trump Says "Not Concerned About a Weaker Dollar"
Dollar Index Hits Four-Year Low

On January 28, the won-dollar exchange rate opened with a sharp drop, falling to the 1,430-won level. This was the result of the dollar index (DXY) plunging and risk appetite strengthening after U.S. President Donald Trump stated that he is not concerned about a weaker dollar.

On the 28th, when the KOSPI index surpassed the 5100 mark intraday for the first time in history, dealers were working in the dealing room of Hana Bank in Jung-gu, Seoul. On the same day, the KOSDAQ index broke through the 1100 mark intraday, and the won-dollar exchange rate started trading at 1431 won, down 15.2 won from the previous trading day. 2026.1.28 Photo by Kang Jinhyung

On this day, the won-dollar exchange rate opened at 1,431.0 won in the Seoul foreign exchange market, down 15.2 won from the previous trading day, and has been hovering around the 1,430-won level during early trading. This marks the lowest level so far this year.

The exchange rate had closed higher in the previous session, ending a five-day streak, as uncertainty over U.S. tariffs came into focus. However, it reversed course and began to fall again overnight after President Trump’s comments signaling acceptance of a weaker dollar drew attention.

On January 27 (local time), at an event in Iowa, President Trump was asked by reporters whether he was concerned about the recent decline in the value of the dollar. He responded, "No, I think it's good," adding, "Look at the value of the dollar and the business we are doing. The dollar is doing very well." He further stated, "I want to let the dollar find its own level. That is the fair thing to do," indicating he does not intend to artificially defend the dollar.

These remarks were interpreted as a signal that he is willing to tolerate a weaker dollar to boost competitiveness. As a result, the dollar index, which measures the value of the dollar against the currencies of six major countries, dropped from the low 97 range the previous afternoon to 95.8 on this day. This is the lowest level in about four years, since February 2022.

The Japanese yen, which tends to move in tandem with the Korean won, has continued to strengthen after U.S. and Japanese monetary authorities hinted at the possibility of an unusual joint intervention. The yen-dollar exchange rate, which was close to 160 yen last week, fell to the 152-yen range on this day.

Min Kyungwon, a researcher at Woori Bank, said, "Favorable factors such as the strengthening yen, concerns over a U.S. federal government shutdown, and President Trump’s comments accepting a weaker dollar were all confirmed overnight, contributing to the decline in the exchange rate." He added, "With risk appetite for growth stocks also recovering, the intraday low could fall even further."