The pound has risen against both the dollar and the euro, closing at $1.33 and €1.20.

Apparently this effect was caused by the failure of the Bank of England to reduce the interest rate fron 0.5% to 0.25%. A currency with a lower interest rate isn't as good investment. So by maintaining the the interest rate meant it was still attractive to investors.

However the decision did cause shares to drop. A classic case of "no pain, no gain", I suppose.

Shared from Sky News: Pound Surges And FTSE Flops After Rates Held http://news.sky.com/story/pound-surges-and-ftse-flops-after-rates-held-10501344