The British pound declines against the dollar as US Treasury yields rebound, offsetting reduced safe-haven demand amid Iran diplomacy progress.
GBP/USD slipped to around 1.3450 in Asian trading on Wednesday, reversing modest gains from the prior session. The move followed a rebound in the 10-year US Treasury yield, which had dipped toward 4.61% on Tuesday before recovering, bolstering the dollar’s strength.
Earlier yield declines were driven by falling energy prices, easing inflation concerns and reducing expectations for Federal Reserve hawkishness. However, sterling’s momentum remains limited, with strategists noting subdued volatility due to a lack of UK economic data.
Diplomatic progress between the US and Iran over reopening the Strait of Hormuz has further weighed on safe-haven demand for the dollar, though the greenback’s near-term trajectory remains tied to yield movements.