The GBP/JPY currency pair settled above recent low of 209.62, its weakest level since March 5th.
The Sterling drew certain support from market expectations that the Bank of England will likely deliver two interest rate hikes in 2026. Those expectations are being shaped by persistent inflation concerns and the impact of rising energy prices.
At the same time, Bank of England Governor Andrew Bailey has recently warned that such expectations may be overstated, signaling a degree of caution around the current pricing of the policy path.
Meanwhile, geopolitical developments in the Middle East continued to be a potential source of support for the Yen, given its safe-haven status.
US President Donald Trump mounted pressure on Iran to make a deal after a military strike destroyed a bridge near Tehran.
Iran’s foreign minister Abbas Araghchi said that Washington’s recent strikes on civilian infrastructure would not force the country to back down, adding that such actions “convey the defeat and moral collapse of an enemy in disarray.”
The minor Forex pair lost 1.05% for the week.
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