Pound Falls as Dollar Strengthens on Rising Yields and Oil Prices

The British Pound (GBP) has continued to decline against the US Dollar (USD), reaching around 1.3510 during Asian hours on Wednesday.

This downturn is largely attributed to the strengthening of the USD, driven by rising bond yields and surging oil prices that have reignited concerns over persistent inflation and potential interest rate hikes.

The US 10-year Treasury yield has reached its highest level since early 2025, with a global bond selloff pushing it up to 4.80%.

Additionally, crude oil prices have increased amid escalating hostilities between the United States (US) and Iran, raising significant risks of energy flow disruptions from the Middle East.