London's FTSE 100 dips as sterling strengthens amid Trump-Powell tensions

Jan 12 (Reuters) - London's FTSE 100 fell on Monday as a stronger sterling pressured the export-heavy index, amid tensions between the Trump administration and Federal Reserve Chair, and banks declining after U.S. President Trump's credit card rate cap call.

The blue-chip FTSE 100 .FTSE was down 0.07% by 1032 GMT. Meanwhile, the domestically focused mid-cap index .FTMC slipped 0.2%, on pace to snap five-day streak of gains.

The pound strengthened GBP= against the dollar, last up 0.4%, after the Trump administration threatened Fed Chair Jerome Powell with a criminal indictment, a move that could endanger the greenback's safe-haven status.

Banking stocks were also a major drag after President Donald Trump on Friday called for a one-year cap on credit card interest rates at 10%, starting on January 20, but did not provide details.

Barclays BARC.L fell 3.3% and Close Brothers Group CBRO.L slid 1.2%.

The move also prompted investors to flee to safe-haven assets with the index of precious metal miners .FTNMX551030 jumping 4.3%, after gold struck a record high of more than $4,600 an ounce. GOL/

Meanwhile, Britain's job market cooled in December as hiring fell for a 39th month, while starting salaries rose, keeping the Bank of England focused on rate cuts after December's move.

Among other stocks, British semiconductor wafer maker IQE IQE.L jumped 34.6% after the company said it expects its revenue and adjusted core profit for fiscal 2025 to be at the upper end of its forecasts.

Oxford Nanopore Technologies ONT.L was up 7% after the biotech firm forecast annual revenue growth ahead of its forecast.