Safe-haven demand for USD rises after attacks in the Strait of Hormuz weigh on the British Pound.
The British Pound declined against the US Dollar on Tuesday, with GBP/USD dropping to 1.3373. The move follows reports of attacks on two ships in the Strait of Hormuz, heightening geopolitical risks in the Middle East.
Prior to the incident, GBP/USD had traded near 1.3400, reflecting relative stability in currency markets. The attacks have revived demand for the USD as a safe-haven asset, pressuring risk-sensitive currencies.
No immediate market reaction beyond the currency pair was detailed in the reports.