Pound Falls Against Dollar Amid Energy Price Worries

The British pound sterling fell against the US dollar on Thursday, August 13, despite stable GDP figures in the second quarter. The pound traded near 1.3480, down roughly 0.1%, as investors focused on rising oil prices and geopolitical tensions.

Ongoing Iran-US tensions pushed crude oil prices higher, fueling market anxieties about global inflationary pressures. This led to renewed expectations of Federal Reserve rate hikes, supporting the US dollar's yield spread.

The combined effect of these factors drove the US dollar index to rebound from its post-CPI release low, making it a primary factor weighing on GBP/USD.