GBP Tumbles as Fed Overtakes BoE in Interest Rate Battle

The British Pound (GBP) took a hit yesterday as the US Federal Reserve raised interest rates to a range of 3.75-4.00%, making American money more valuable than British money for the first time this year.

The move left the GBP trading at just under 1.3400, down 91 pips and 0.68% lower against the US Dollar (USD).

This development came after the Bank of England's (BoE) decision to keep interest rates unchanged, which some had forecast would happen.