Sterling fell 0.16% to 1.3496 USD, while euro slipped 0.04% to 1.1759, as dollar steadied amid Middle East tensions.
Elevated oil prices and firming inflation expectations limit dollar decline, with analysts citing geopolitical risk and energy market volatility.
Euro struggles above 1.18 as markets reassess ECB tightening, with June rate hike possible but pricing less certain, near‑term range mid‑1.17.
UK pound faces pressure from softer rate expectations and political scrutiny of Prime Minister Keir Starmer, adding near‑term uncertainty.