UK stocks were on a rollercoaster ride amid speculation over investor confidence in German lender Deutsche Bank.
The FTSE 100 Index closed 20.09 points lower at 6,899.33, after falling as low as 6,809.51.
Meanwhile, sterling rose to $1.30 against the US dollar, and to €1.156 against the euro, after positive UK economic news such as an upward revision of second-quarter gross domestic product to 0.7 per cent from 0.6 per cent.
German-listed shares in Deutsche Bank spiked in afternoon trading after it emerged that it may only have to stump up $5.4 billion (£4.1bn), rather than $14bn, as part of a US Department of Justice settlement linked to the sale of mortgage-backed securities.
The German lender’s shares had slipped to €9.98 at one point, their lowest level since the 1980s, but traded 6.5 per cent up at €11.57 in afternoon trading.
Royal Bank of Scotland shares fell 1.7p to 178.8p after the bank said it would complete the ring-fencing of its retail banking operations by the end of 2018.
The biggest risers on the FTSE 100 included Persimmon up 74p to 1,815p and Taylor Wimpey up 4.1p to 154.1p. The biggest losers included Capita down 28p to 670p, and Sky down 16.5p to 894p.