Pound Falls Below $1.35 Amid Weak UK Data and Geopolitical Tensions
The British pound came under pressure on Thursday due to weak UK data and safe haven demand amid ongoing geopolitical turmoil. The dollar index held steady around the 100 mark, providing some support to the greenback. While recent US inflation figures showed moderation of inflationary pressures, limiting upside for the DXY, the stalled peace process in the Middle East continues to drive demand for safe-haven assets.
The UK's economy grew at a steady 0.4% pace in the second quarter, but weaker than expected factory output offset this positive data. Industrial production contracted 0.2% in June, exceeding expectations of a 0.1% growth, and manufacturing production shrank by 0.5%, also exceeding market forecasts.
The pound's value has been affected, with GBP/USD trading under $1.35 at $1.3481, marginally lower on the day. On the NSE, GBP/INR futures are trading at 128.83, down 0.18% on the day.