Spike in dollar drags FTSE down

A spike in the US dollar triggered by the prospect of smaller-than-expected stimulus measures from the Fed caused mining stocks to slide and dragged the London market lower today.

The greenback’s improvement made dollar-driven mining stocks less attractive, with Xstrata down 3% or 36.6p to 1277p and Rio Tinto off 76p to 4083p. The FTSE 100 Index was on the back foot as a result, down 23 points at 5684.