The British pound fell toward $1.33, its weakest level since December 9, as investors weighed the potential economic impact of the escalating Middle East conflict alongside rising inflation pressures and the possibility of a more hawkish Bank of England stance. Regional tensions escalated as Israel struck Beirut on Friday, after ordering the unprecedented evacuation of the city’s southern suburbs, marking a significant expansion of its war against Iran, launched a week ago in coordination with the US. Meanwhile, President Trump claimed a role in choosing Iran’s next supreme leader following Ayatollah Khamenei’s reported death. The resulting surge in energy prices is expected to keep inflation elevated across Europe, limiting the likelihood of a Bank of England rate cut. UK money markets now assign less than a 20% chance of a rate cut this month, down sharply from over 80% before the conflict, while UK rate futures price less than a 50–50 chance of a single cut by the end of 2026.
The GBP/USD exchange rate rose to 1.3401 on March 6, 2026, up 0.38% from the previous session. Over the past month, the British Pound has weakened 2.13%, but it's up by 3.76% over the last 12 months. Historically, the British Pound reached an all time high of 2.86 in December of 1957. British Pound - data, forecasts, historical chart - was last updated on March 6 of 2026.
The GBP/USD exchange rate rose to 1.3401 on March 6, 2026, up 0.38% from the previous session. Over the past month, the British Pound has weakened 2.13%, but it's up by 3.76% over the last 12 months. The British Pound is expected to trade at 1.34 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.37 in 12 months time.