Sterling Steadies Amid Ongoing US-Iran Tensions

The British pound traded relatively flat on Tuesday as investors kept a close eye on developments surrounding potential talks between the United States and Iran. Sterling edged up by less than 0.1% to $1.344 after posting strong gains late last week, supported by a weaker US dollar following official intervention to back the Japanese yen and the Federal Reserve's decision to leave interest rates unchanged.

The sterling was also broadly unchanged against the euro, with the single currency slipping less than 0.1% to 85.62 pence.

Oil prices declined earlier this week after US President Donald Trump said on Monday that talks with Iran were underway, easing concerns over inflationary pressures in energy-importing economies, including the United Kingdom. However, Iran denied holding or planning any negotiations, prompting a partial rebound in oil prices, with Brent crude rising about 3% to $86.10 a barrel during Tuesday's trading.