Renewed US strikes on Iran spark risk aversion, weakening the British Pound against the US Dollar in early trading.
The GBP/USD pair fell to near 1.3530 in early Asian trading on Thursday, extending losses below 1.3550. The decline follows renewed US military strikes on Iran, raising concerns over energy-driven inflation due to potential disruptions in the Strait of Hormuz.
Prior to the escalation, the pair had stabilized around 1.3570, with markets pricing in modest geopolitical risks. The conflict reignites fears of higher oil prices, which could pressure central banks to maintain tighter monetary policy amid inflationary pressures.
No immediate market reaction data was reported beyond the currency move.