The FTSE 100 hit a new record trading high amid increasing bets the US could increase interest rates.
The UK’s blue chip index has risen 0.5pc to 8,066.39 in early trading – beating its previous intraday record of 8,047.06 set in February last year.
It comes as traders begin building bets that the US Federal Reserve could raise interest rates before the end of 2024 as the American economy remains resilient, something which seemed unthinkable at the turn of the year.
As a result, the pound has fallen to its lowest level in five months against the dollar, delivering a boost to the exporter heavy FTSE 100.
Sterling was down 0.1pc against the dollar at $1.233, near its weakest point since November.
It was flat against the euro, which is worth 86p.
A weaker pound against the dollar boosts the FTSE 100 as many of its companies report their finances in the US currency.
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The FTSE 100 hit a new record trading high as markets opened amid increasing expectations the US will increase interest rates.
The UK’s blue chip index has risen 0.5pc to 8,066.39 – beating its previous intraday record of 8,047.06 set in February last year.
It closed at a record high on Monday after fears about an escalating conflict in the Middle East eased.
The midcap FTSE 250 began the day 0.2pc higher at 19,632.89.
