Sterling nears two-month low as dollar gains strength
The pound fell toward a two-month low as strong U.S. jobs data and Middle East conflict drove dollar demand on Monday. Markets are now weighing delayed British rate hikes against potential Federal Reserve tightening.
GBP/USD fell toward a two-month low on Monday as a strengthening dollar and geopolitical volatility pressured the currency. The pound traded at $1.334, hovering just above the $1.3304 trough recorded on May 18. This movement follows a better-than-expected U.S. jobs report and rising energy costs that have altered global interest rate expectations.
### Geopolitical Tensions Drive Safe-Haven Flows Capital flowed into the dollar following military escalations in the Middle East. Israel reported strikes on an Iran petrochemical plant and other military targets, causing oil prices to jump as much as 5%. These events reinforced the dollar's status as a safe haven while the pound, often viewed as a pro-risk currency, underperformed.
