UK stocks were little changed in early trading, as uncertainty around currency markets weighed on sentiment.
The FTSE 100 was flat at 10,207.80, held back by a weaker US dollar, while the more domestically focused FTSE 250 edged 0.2% higher to 23,457.69.
A softer dollar tends to act as a headwind for the FTSE 100, as many of its largest constituents generate and report a significant portion of their earnings in US currency, diluting the value of overseas revenues when translated back into sterling.
US President Donald Trump insisted the dollar was “doing great” even as the US currency slid to a four-year low, underscoring growing unease among investors.
Sterling climbed above $1.38 for the first time since October 2021, as the dollar’s appeal as the world’s reserve currency appeared to weaken. Investors rotated into gold and other precious metals amid rising doubts over global trade relationships and policy stability.
Meanwhile, gold briefly surged through the $5,300-an-ounce mark for the first time , extending its record-breaking rally before easing back. Extending a powerful rally that has seen prices rise 22% so far this year. Silver has surged even more sharply, rocketing around 60% over the same period. Other traditional safe-haven currencies also strengthened as investors continued to diversify away from the dollar.
