The British Pound dropped against the U.S. Dollar after the Bank of England fulfilled expectations by increasing interest rates by a quarter of a percentage point. ''The market will be reluctant to draw too much from the statement and the hike, both of which were in line with expectations,'' said Daragh Maher, a currency strategist at Calyon in London.

Despite falling, the British Pounds decline is still limited after a report from the National Institute for Economic and Social Research revealed that the U.K economy had managed to expand by 0.7 percent.

In the foreign exchange against the U.S. Dollar, the British Pound was worth $1.9839 compared to $1.9922 earlier in the week.