Sterling today: Pound slips as oil-fuelled dollar demand builds

Sterling slipped on Tuesday as the dollar gained support from higher oil prices, following stalled US-Iran talks. The GBP/USD rate fell 0.19% to $1.3232, while the EUR/USD rate dropped 0.24% to $1.1344. Iranian officials suggested a deal before the US midterms was improbable. The US administration rejected Iran's proposal to reopen the Strait of Hormuz.

Brent crude hovered around $109 per barrel, and the pound's decline was attributed to dollar strength rather than UK fundamentals. British Retail Consortium data showed UK inflation easing to 1.4% in September from 1.5% in August. The euro steadied despite ECB President Christine Lagarde's comments, which hinted at mild tightening. ING expects the Fed to tighten by 17 basis points by October, while the ECB waits until December.