Pound reaches highest level since 'flash crash' in October

Pound reaches highest level since 'flash crash' in October

The pound has hit its highest level since the October "flash crash" as better-than-expected construction figures and concerns over Donald Trump's presidency put Brexit fears on the back-burner.

Sterling rose over 0.9% to about 1.266 against the US dollar and was up 1.26% against the euro at 1.166.

The stronger pound dragged the FTSE 100 lower as many of the listed multinationals tend to benefit from earnings in stronger foreign currencies. 

The blue chip index was trading lower by about 1.23% or 83 points at 6744. 

The British currency climbed higher following news the output in Britain's construction industry bucked expectations of a September slowdown thanks to a jump in infrastructure work.

The Office for National Statistics (ONS) said construction activity grew 0.3% in September compared to economist estimates for a 0.4% drop.

However, the bulk of sterling's gains has been chalked up to Mr Trump's presidential victory.