British Pound Falls Under $1.35 Amid UK Data Weakness and Geopolitical Turmoil

The British pound fell to under $1.35 on Thursday due to weak UK data and safe-haven demand amid ongoing geopolitical turmoil.

The dollar index (DXY) held steady around the 100 mark, with some support from recent US inflation figures showing moderation of inflationary pressures and reduced bets of further rate cuts.

Despite a mild gain for the pound on positive UK GDP data, which grew at a steady 0.4% pace in the second quarter, weaker-than-expected factory output offset this, with industrial production contracting 0.2% in June and manufacturing production shrinking 0.5%.

The GBP/USD is currently quoting under $1.35 at $1.3481, marginally lower on the day, while GBP/INR futures on the NSE are trading at 128.83, down 0.18% on the day.