The pound traded lower after recording its biggest daily fall in more than a year in the previous session, weighed down by strong US dollar trading and market concerns over a surge in gas prices.
The surge in gas prices in the UK is the latest risk for the currency trading, which is due to a shortage of supply thus triggering market concerns over its impact on the economy.
In the Asian session, the pound pair against the US dollar traded at its lowest level since January after plunging nearly 200 pips in the New York trading session.
In addition, the pound was also affected by the strengthening of the greenback dollar which was supported by the rise in high 10 -year US bond yields to 1.55%.
The dollar index, which measures the strength of the greenback against a basket of major currencies, rose to an 11 -month high of 93.70.
Bond yields have risen since the US Federal Reserve (Fed) turned hawkish at a policy meeting last week, bolstering market views for a faster -than -expected policy tightening.
However, after seeing US consumer confidence data readings drop to a 7 -month low, the market is more cautious in positioning for the US dollar.
Meanwhile, at a Senate Banking Committee conference, Chairman Jerome Powell said inflation is now more worrying than it was seen earlier this year.
