GBP Crashes Below 1.32 as USD Strengthens on High Yields and Oil Prices

The British Pound (GBP) is struggling against the US Dollar (USD), hitting fresh three-month lows below 1.3200. The reversal in fortune comes as higher US Treasury yields and a risk-off market mood bolster the USD.

US long-term Treasury yields have reached their highest level in 24 years, with the benchmark 10-year note exceeding 5.30% on Thursday. This surge has driven energy prices higher, further pushing global inflation upwards.

The UK's S&P Global Manufacturing PMI has been revised lower to 51.9 in September, marking the weakest output growth in six months. Orders and exports are growing moderately but at a slower pace due to increased energy costs.