The pound lost ground against a stronger euro as investor jitters around Catalan independence momentarily eased.
Sterling fell 0.3% versus the eurozone currency to 1.114, while the pound traded flat against the US dollar at 1.320.
The euro was experiencing a slight recovery after Catalonia temporarily suspended its independence declaration to allow for talks, providing some momentary relief for European investors.
But the weaker pound was not enough to lift the FTSE 100, which ended the day relatively flat.
London’s blue chip index fell by 0.06% or 4.46 points to 7,533.81.
Movement among its European peers was also relatively subdued, with the French Cac 40 down 0.02%, while the German Dax ended the day up 0.17%.
Brent crude prices fell 0.4% to 56.28 despite Opec issuing forecasts for higher demand in 2018, which could help to re-balance global supply levels.
