The UK’s benchmark FTSE 100 stock index slipped on Friday, registering weekly declines, after hotter-than-expected retail sales data from the economy, while a rise in the British pound pressured export-oriented companies.

The FTSE 100 fell 1.2%, while the more domestically-focussed midcap index lost 1.6%. Both indexes marked weekly losses and their biggest one-day fall in almost seven weeks.

British retail sales rose by a stronger-than-expected 1% in August, beating forecasts for a monthly rise of 0.4% and growth in July was revised up, data showed.

The data provided an extra boost to the pound’s upbeat trend, which has risen to its highest level against the dollar since 2022 this week after the Federal Reserve cut rates by 50 basis points, while the Bank of England kept rates on hold at its meeting on Thursday.

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Friday’s declines were broad based, with all major sector indexes trading in the red, led by a 5% drop in the personal goods index.

Burberry lost 3.5% after brokerage Jefferies cut its rating on the stock to underperform from neutral, citing continued difficulties for the luxury goods sector.

Further dragging the personal goods index, Dr Martens slumped over 19% after a block trade was priced at 57.85 pence per share, lower than its last close of 64.10 pence.

Private investment company Bridgepoint Group lost 11.4% on the news of shareholder share sale at a possible discount.

Precious metal miners were the only outliers, gaining 0.2% after gold prices soared above the $2,600 level for the first time, extending a rally boosted by bets for further U.S. interest rate cuts, and tensions in the Middle East.

UK stocks continue to lag both U.S. and euro zone equities this year, with both the Fed and European Central Bank expected to ease rates faster than the BoE.