Sterling fell sharply on Thursday in reaction to the Bank of England's decision to raise the UK base rate to 0.5% - what some called "the most dovish rate hike in history".
Even after the first rate hike in more than a decade, the pound was 1.1% lower against the dollar $1.3106 and fell 1.3% against the euro to €1.1248.
Although higher UK interest rates should raise the attractiveness of the country to foreign investment and, therefore, lift the pound, the move had been widely flagged by the Bank, and bullish moves on sterling prior to Thursday's announcement were unwound, leaving the pound weaker.
One and done
Many investors - given the language of the Bank's monetary policy committee - believed this would be a single move, and not the beginning of a rate hike cycle.
The MPC said: "Monetary policy continues to provide significant support to jobs and activity in the current exceptional circumstances. All members agree that any future increases in the Bank Rate would be expected to be at a gradual pace and to a limited extent."
The "limited" and "gradual" language that accompanied the move lowered expectations that further rate increases would follow in the footsteps of this move.
Warnings on economy
The Bank also issued further warnings on the economy - the impact of Brexit and, indeed, the impact of this rate move accompanied Thursday's action, providing further bearish sentiment towards the pound.
"The usual warnings around Brexit remain, and market hawks will have to wait until at least September 2018 for another hike in interest rates. But there could be more trouble for the pound ahead, in the shape of December’s EU summit," said Hamish Muress, analyst at OFX.