Pound Takes Hit as Hawkish Fed Rhetoric and Strong US Jobs Fuel Dollar Rally

The British Pound fell for the fourth consecutive trading day against the US Dollar due to hawkish comments from Federal Reserve officials and strong US jobs data. The GBP/USD rate dropped by 0.21% to 1.3213, with the Fed's stance on potential future rate hikes supporting the Greenback.

The latest US jobless claims beat forecasts, coming in at 197K for the week ending September 19, which reinforced the resilient state of the US labor market. Meanwhile, oil prices surged over 4% due to a lack of progress in talks between the US and Iran, intensifying global inflation concerns.

According to Federal Reserve officials, including New York Fed John Williams and Philadelphia Fed Anna Paulson, it is reasonable to expect another rate hike this year to combat inflation. Cleveland Fed Beth Hammack also reaffirmed her hawkish stance on inflation pressures remaining tilted to the upside.