{
  "id": 10581747,
  "title": "British Pound softens to near 1.3250 as elevated US yields outweigh BoE’s hawkish tone",
  "url": "https://urgent.news/2026/09/29/british-pound-softens-to-near-1-3250-as-elevated-us-yields-outweigh",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-29T01:33:20.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/british-pound-softens-to-near-13250-as-elevated-us-yields-outweigh-boes-hawkish-tone-202609290133"
  },
  "original_language": "en",
  "account": "The British Pound (GBP) slipped to a near 1.3250 level against the US Dollar (USD) during early Asian trading hours on Tuesday. This decline occurred due to elevated US Treasury yields, which currently stand above 5% at multi-decade highs, bolstering the USD against the GBP. Traders will closely monitor Fed communications later in the week. Rising US economic data and concerns over inflation have led traders to anticipate further Federal Reserve (Fed) rate hikes. Furthermore, a surge in long-end Treasury yields has also pressured the major currency pair. As US President Joe Biden rejected Iran's offer, oil prices surged, adding upward pressure to US yields and strengthening the dollar more broadly. Marc Chandler, chief market strategist at Bannockburn Forex, noted that Iran's rejection and resulting oil price increases are contributing to the dollar's strength. Meanwhile, hawkish statements from the Bank of England (BoE) could potentially support the GBP in the short term. However, the BoE has not raised interest rates since the beginning of the Iran war, partly because its stance has already been restrictive. HSBC analysts warn that the Pound may remain under pressure in the near term due to weak UK labor demand and sluggish private sector momentum. They also highlight that higher energy prices create a challenging policy mix, as inflation risks rise while growth momentum faces obstacles. BoE's Deputy Governor Ramsden expressed a potential case for raising Bank Rate if inflation pressures persist. Despite this hawkish tone, the Pound still faces significant challenges, as markets are pricing in about 100 basis points of tightening from the BoE by July 2027.",
  "summary": "The GBP/USD pair loses ground to near 1.3250 during the early Asian trading hours on Tuesday. US Treasury yields remain above 5% at multi-decade highs, supporting the US Dollar (USD) against the British Pound (GBP). Traders will keep an eye on the Fedspeak later on Tuesday.",
  "key_points": [
    "British Pound drops to 1.3250 against USD due to high US yields",
    "US Treasury yields above 5% at multi-decade highs",
    "BoE's hawkish tone may not support Pound in near term"
  ],
  "editors_take": "The British Pound's decline shows that despite a hawkish tone from the Bank of England, elevated US yields and a strong dollar are currently outweighing potential support for the currency.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}