British Pound Slips as Risk-Off Sentiment Lifts Dollar

The British pound dropped 0.13% against the US dollar on Tuesday as a turn to risk-off mood gave the greenback a bid, despite the dollar being otherwise flat on the day. The catalyst was a report that a Chinese state-backed company is now producing advanced chipmaking machines, which sparked a sell-off in shares of Dutch equipment maker ASML and dampened investor sentiment.

Cable traded at 1.3305, retreating from an earlier high. The sour shift in risk appetite favored the safe-haven dollar, even as broader FX moves were limited.