The FTSE 100 was overdue for a new high, and it carried a heavy flavour of currency effects

Every dog will have its day and here comes the FTSE 100 index, not so much soaring as limping to a record high of 8,076. If that sounds too grumpy, consider that the previous record, 8,047, was set in February last year.

- Nils Pratley

In the 14 months it has taken the UK's premier index to regain its old record level, the S&P 500 index in the US has marched upwards by 22% - and done so in a straight line, more or less, until a slip in the past fortnight.

Also note that the Footsie's latest push above 8,000 carries a heavy flavour of currency effects at work. The US dollar has been strengthening against most major currencies, including sterling, as markets look at the persistence of inflation in the US and judge that the Federal Reserve may not cut interest rates this year - and could even raise them.

Since 75% of the aggregate earnings of Footsie companies are made in foreign currencies, primarily the US dollar, there is a simple beneficial conversion effect when those profits are expressed in pounds and pence. Rises in the sterling-denominated share prices of Shell and BP, two big dollar earners, account for half of the Footsie's gains this year.