Pound sterling has fallen by almost one per cent against the dollar to $1.36 after a shock decision by the Bank of England to hold rates at 0.1 per cent.
It fell similarly against the Euro by 0.51 per cent to €1.172.
The market movements follow the surprise decision by the BoE to leave interest rates at a record low despite mounting speculation from financial markets, economists and experts.
Officials on Threadneedle Street voted 7-2 in favour of leaving borrowing costs where they are. The Bank will finish the final leg of its QE programme, taking the stock of bond purchases to £895bn.
The fall of sterling, and the Bank’s decision, was met with concern by some.
“After a week of shadow-boxing, the Bank’s surprise decision has sent sterling sprawling on the canvas,” said managing director of global liquidity provider IX Prime, Jay Mawji.
He continued: “The Pound has been badly winded not just by the Bank’s judgment call, but by the dovishness of its tone.”
“The Monetary Policy Committee’s minutes reveal a reluctance to put up rates, not just now but also for a while yet,” he added.