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.