GBP/USD Tumbles to Three-Month Low Amid Strong US Dollar and Hawkish Fed Rhetoric

The GBP/USD currency pair has fallen to its lowest level in three months, hitting 1.3203 on Friday.

The British pound remains under pressure from a strong US dollar, expectations of further Federal Reserve rate hikes, and a deteriorating economic outlook amid high oil prices.

Bank of England Deputy Governor Clare Lombardelli said that while energy prices remain high, interest rates may need to rise further, unless the economy shows clear signs of weakness.

However, disagreements persist within the Bank of England's Monetary Policy Committee (MPC), with member Swati Dhingra maintaining a more dovish stance and questioning whether inflation expectations pose a serious threat.