FTSE 100 posts biggest fall in more than a month as US dollar surges

Prospect of Fed slowing its emergency stimulus package triggers heavy selling of shares

The FTSE 100 posted its biggest fall in more than a month on Friday as the prospect of America's central bank slowing its emergency stimulus package triggered heavy selling across the financial markets.

London's blue-chip stock market index fell by 136 points, or 1.9%, on Friday to 7017 points, its worst one-day drop since mid-May, and its lowest closing point in a month.

Behold the Fed's new dot plot: The central bank is mum on tapering but the dot plot (in purple), which signals the path of interest rates, shows it's definitely more hawkish than before and suggests there could be rate increases by the end of 2023. pic.twitter.com/XalDdNXFR8