The pound fell and the FTSE 100 rose as the Bank of England announced it was leaving interest rates unchanged and downgrading UK growth forecasts.
Sterling dropped 0.38% against the dollar to $1.3174 and shed 0.3% against the euro to 1.1121 euros.
At the same time, the 100-share index gained ground. It was 32.56 points or 0.44% up on the day at 7,443.99.
Clothing retailer Next saw its shares surge 9.2% after it increased its dividend to shareholders.
The firm was the biggest riser on the FTSE 100 in Thursday morning trading amid positive reaction to its quarterly trading statement.
Medical technology company Convatec was the worst performer, down 6.7% after reporting a 7.4% fall in operating profit for the first half of the year.