Sterling Crumbles as Strong US Data Sends Dollar Soaring

The British pound has fallen sharply to around $1.325, reaching its lowest level since late June, as the US dollar strengthened following stronger-than-expected PMI data and hawkish comments from Federal Reserve policymakers.

The developments have reinforced expectations of further monetary tightening in the US, putting additional pressure on the sterling.

Higher oil prices, amid continued uncertainty surrounding US-Iran talks, are also weighing on risk-sensitive assets.