The pound fell to a 31-month low on Friday, as the latest UK economic growth figures showed an unexpected contraction in the second quarter.
The London markets closed higher as traders welcomed positive Chinese trade data as tensions with the US continued to cool.
The FTSE 100 closed higher for the first time in eight days after investors cheered US assurances that trade talks with China would still take place next month.
The FTSE 100 closed lower as it came under pressure for the third day in succession, after it was weighed down by poor figures from oil and gas stocks.
The London markets slumped as sterling made its first gains for five days, bouncing back from a two-year low.
The FTSE failed to capitalise on the pound’s continued plunging value on Tuesday, as the leading index was dragged down by uncertainty on European markets caused by the latest Donald Trump attack.
The London markets closed higher as dovish comments from the Federal Reserve helped to bolster the European markets.
The London markets have made a subdued start to the week, with the FTSE 100 moving marginally lower while the finance sector focused on the major reshuffle at Deutsche Bank.
The FTSE 100 closed the day in the red after it failed to recover from a mid-morning slump, despite optimism from traders ahead of the G20 summit.
London’s blue chip market managed to recover some of its losses from Wednesday as the US-China trade war failed to spook the markets, although oil prices suffered as a result of ramped up rhetoric.
The FTSE 100 rebounded on the back of a falling pound, after it was weakened by intense pressure on Theresa May’s leadership.
The London markets rose as investor sentiment was buoyed as trade tensions between the US and China appeared to ease.