Sterling rebounded against the US dollar and euro amid a tentative rally in global markets today, climbing off more than three-decade lows against the greenback.
The British currency had been one of several to tank as investors rushed to put their money in dollars, the world's most liquid currency and seen as a safe haven in times of crisis.
The Bank of England cut benchmark interest rates to a record low of 0.1% and ramped up its bond-buying programme yesterday in a new attempt to shield Britain's economy from the coronavirus pandemic, helping gilts recover.
Analysts were divided as to whether the Bank of England announcement would boost the pound much in the medium-term.
But many said it demonstrated that policymakers were willing to take extraordinary measures to support an economy that is likely to shrink sharply in the coming months.
The pound whipsawed from a fresh low of $1.1413 against the dollar in Asian trading hours overnight. It was last up nearly 2.4% on the day at around $1.18.
Against the euro, sterling was up 2% and was heading for its second day of gains in a row, last trading at 91.23 pence per euro.
Sterling had previously fallen around 12% against the dollar over a little over a week to levels not seen since 1985.
Against the single currency it slid to an 11-year low of 95 pence per euro yesterday.
Markets in Europe were higher today after improved sentiment in Asia, signalling a rally through all geographies and sectors as the huge amounts of stimulus announced by governments and central banks in recent days helped settle some nerves.