FTSE 100 rises but pound falls to one-month dollar low

The pound continued to fall as uncertainty over Theresa May’s future as prime minister hit the currency.

Sterling fell to a one-month low against the dollar, hitting $1.3035 at one point. Against the euro, the pound dropped 0.6% to €1.1135.

Former Tory Party chairman Grant Shapps said on Friday he believed Theresa May should face a leadership election.

Connor Campbell at Spreadex said a leadership battle would be “seriously bruising for the pound”.

“While on Thursday there was a web of reasons why the pound was driven lower, this Friday’s decline seems to have a more singular reason behind it: Tory infighting,” he said.

On the stock market, the FTSE 100 share index ended the week up 14.88 points at 7,522.87.

British Gas owner Centrica fell 1.69% after Mrs May reiterated her position to introduce a draft bill to the House of Commons to cap some energy tariffs.

Shares in EasyJet had fallen 1.79% by the end of trading, despite the airline saying its full-year profits would be at the upper end of forecasts.

It expects to report profits of between £405m and £410m for the year to 30 September. The carrier described this as “a good performance” in a “rapidly evolving” market.

In the FTSE 250, shares in precision equipment maker Renishaw recovered somewhat after a fall of more than 8% earlier in the day, after Stifel cut its rating on the firm to “sell” from “hold”.