The FTSE 100 in Britain experienced its most significant weekly rise in over six months, closing Friday with a 1.4% increase. This surge was driven by a decline in the sterling, which favored dollar-earning companies, despite weak business activity data affecting banks negatively.

As the pound fell 0.6% to $1.25105, its lowest since May, due to shrinking British business output and unexpected retail sales decline, UK-listed international firms such as AstraZeneca and Unilever saw share benefits. Finance minister Rachel Reeves’ recent budget, which raised taxes, also contributed to reduced private sector activity.

Traders predict the Bank of England will maintain current interest rates next month but anticipate cuts next year. In contrast to the blue-chip index’s performance, banks like HSBC faced challenges from the economic data, while the FTSE 250 midcap index rose with Games Workshop topping the gainers with a 17.3% increase.

(With inputs from agencies.)