Korean currency edges up in morning trade amid decision by UAE to leave OPEC

The Korean won rose slightly against the U.S. dollar Wednesday morning amid a decision by the United Arab Emirates (UAE) to exit the OPEC oil cartel. The won traded at 1475.0 to the dollar, up 1 won from the previous session's close, as of 10:43 a.m., with the currency holding a tight range. The won opened at 1474.0 to the dollar, down 0.4 won, but appeared to remain firm following the UAE's announcement to leave OPEC in May. Some analysts expect the UAE's withdrawal and its target of producing more oil to weaken a rise in oil prices, as the crucial Strait of Hormuz remained blocked due to the U.S.-Israeli war with Iran. However, global oil prices continued to rise, with West Texas Intermediate (WTI) crude futures rising to nearly $99 per barrel in New York trading, while Brent crude futures climbed to around $111 per barrel. Higher oil prices tend to weigh on the won by increasing demand for dollars for crude imports. South Korea relies heavily on overseas supplies to meet its energy needs.

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