The pound rallied to the day's highs today after the Bank of England cut interest rates to 0.1% and ramped up its bond-buying programme. 

Sterling jumped 0.8% to $1.1724 while the British currency rallied against the euro, last up more than 1% at 92.54 pence per euro. 

The rate cut offered some support to the weakening pound, which collapsed to its weakest level since 1985 as traders braced for the impact of the coronavirus outbreak on the British economy. 

The British currency has fallen around 12% against the dollar over eight brutal days of trading, hitting a low of $1.1450 in New York trading hours last night. 

"I suspect the only uncertainty was the timing of the move but it was clearly going to happen," said Adam Cole, chief currency strategist at RBC Capital Markets. 

"The move does help but whether this or other central bank action will help draw a line under risky assets? I'm not convinced." 

Sterling has been one of several currencies to tank as investors rush to put their money in US dollars, the world's most liquid currency and seen as a safe haven in times of crisis. 

The Bank of England's Monetary Policy Committee voted unanimously for the rate cut and for a £200 billion increase in the central bank's bond buying programme to £645 billion.