The pound has steadied after enduring its biggest one-day decline for more than two years amid Thursday’s Brexit deal chaos.
Stocks on the London market also regained their poise, but investors were braced for more turbulence amid speculation Prime Minister Theresa May may face a confidence vote over her leadership.
Sterling edged 0.2% higher to just under 1.28 US dollars, having tumbled on Thursday after a raft of key ministerial resignations – including Brexit Secretary Dominic Raab – sparked the steepest sell-off since the October flash crash in 2016.
The pound also rose 0.2% to just under 1.13 euros and was higher against most major currencies.
The FTSE lifted 15.1 points to 7053.1 in morning trading.
Financial and banking stocks and housebuilders remained under pressure, however, as firms exposed to the UK economy continued to be hit on fears over the impact of a no-deal on growth.
Britain’s biggest banks were summoned for a call with City regulators on Thursday over market turbulence caused by the Brexit deal turmoil.
It is understood major UK banks were asked for their feedback on the market reaction, with the Financial Conduct Authority saying it was having “regular contact” with firms and would “continue to engage with them”.
Housebuilders were also among the worst affected stocks on Thursday and continued to suffer falls.
But the wider market was helped by positive trading overnight on Wall Street and Asia after oil prices clawed back from steep falls earlier in the week.