FX.co ★ South Korean Won Falls on Dollar Strength

The South Korean won experienced a decline to approximately 1,410 per dollar on Monday, marking its third consecutive decline due to the strengthening of the US dollar and a general softening of regional currencies. Investors are currently evaluating the repercussions of the US government shutdown, which has resulted in the suspension of key federal programs and the postponement of significant data releases, notably September’s jobs report. The demand for US assets as a safe haven remains steady, while the markets anticipate Federal Reserve rate cuts, one anticipated this month and another in December. Additionally, the won's depreciation is also affected by the weakness seen in regional currencies, particularly the yen, which declined after Japan's political developments appointed a pro-stimulus, fiscally dovish lawmaker as the prime minister. Domestically, market players are closely monitoring US–Korea trade talks. Last week's statements that reiterated limitations on foreign exchange intervention have contributed to a cautious market sentiment.