GBP/USD Falls as Middle East Tensions Escalate
The Pound to US Dollar exchange rate fell last week due to surging energy prices and escalating tensions in the Middle East, making the safe-haven US Dollar more attractive while putting pressure on Sterling.
At $1.3317, the GBP/USD rate dropped approximately 1% over the week.
The US Dollar strengthened against most major currencies as global risk appetite remained surprisingly resilient through the first half of the week.
Tensions in the Middle East continued to escalate, with Yemen's Houthi rebels expanding the conflict from the Gulf into the Red Sea, causing global oil prices to climb above $100 a barrel and prompting investors to seek defensive assets.
The Pound came under sustained pressure as rising UK government borrowing costs unsettled financial markets.