Pound falls to 89.2p against sterling

The pound has fallen again against sterling following the Bank of England's surprise move yesterday to increase British interest rates to their highest level for five years, despite the recent turmoil on world stock markets.

The pound closed at 89.20p against sterling from 89.89p in late trade but held its value against the deutschmark closing at DM2.5955 from DM2.5942. Page 2