The pound fell to a fresh 37-year low against the dollar Friday as traders grow increasingly worried about the economic outlook with central banks ramping up interest rates to fight runaway inflation.

Sterling fell as low as $1.1170 — its weakest since early 1985 — after the Bank of England on Thursday hiked borrowing costs by 50 basis points. That followed a three-quarter-point lift by the Fed on Wednesday and a warning of more to come.