GBP Plunges Amid Hormuz Hopes and Soaring Borrowing

The Pound Sterling (GBP) took a hit on Tuesday, plummeting by over 0.17% despite reports that Tehran intends to reopen the Strait of Hormuz if certain conditions are met.

This news initially sparked hopes for a boost in trade and economic activity, but it didn't have the desired effect on the GBP/USD pair, which currently trades at 1.3343 after peaking at 1.3387.

Meanwhile, data from the UK revealed that public sector borrowing increased beyond expectations in August, reigniting concerns about government finances and weighing on the pound.