Rate hike hint boosts ster­ling but hits FTSE

The Courier & Advertiser (Angus and The Mearns Edition) - - BUSINESS -

Ster­ling has leapt to its high­est level since the EU ref­er­en­dum re­sult af­ter a Bank of Eng­land pol­i­cy­maker hinted that he may back an in­ter­est rate rise.

The pound con­tin­ued its re­mark­able rally from Thurs­day’s ses­sion, push­ing 1.4% higher to 1.358 ver­sus the US dol­lar to clock lev­els not seen since June 24 last year.

Ster­ling also climbed 0.9% against the euro to 1.135.

How­ever, the strength of the UK currency heaped more mis­ery on blue-chip stocks, with the FTSE 100 In­dex drop­ping to its low­est level since April, be­fore clos­ing down 79.92 points to 7,215.47.

Multi­na­tional blue-chip stocks suf­fer when the pound rises be­cause their over­seas earn­ings are hit by a less favourable currency trans­la­tion.

It comes af­ter one of the Bank’s most dovish pol­icy-mak­ers Gert­jan Vlieghe, said he may back a hike “as early as in the com­ing months”.

The big­gest ris­ers on the FTSE 100 In­dex were Im­pe­rial Brands up 67p to 3,327.5p, ITV up 2.2p to 158.2p, Bri­tish Amer­i­can To­bacco up 48.5p to 4,741p and Next up 51p to 5,045p.

The big­gest fall­ers were Car­ni­val down 317p to 4,783p, Prov­i­dent Fi­nan­cial down 35.5p to 794p, Ferguson down 152p to 4,486p and Pear­son down 18p to 568.5p.

ITV saw its share price rise 2.2p to close at 158.2p.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.