The FTSE 100 Index's 11-day winning streak ended yesterday as traders worried about the weak dollar and a possible interest rate rise.

The Footsie finished the day 8.1 points down at 4505.2.

Despite positive retail news and upbeat service sector data, the index remained close to its opening mark throughout the day.

City dealers said the Footsie was sitting under a cloud, with the weakening dollar and the prospect of a UK rate rise as early as next month unnerving investors.

The Dow Jones Industrial Average offered little comfort, dropping 42 points shortly after London's close.

In London, figures showed the UK service industry growing for the ninth month in succession, confirming its turnaround in the second half of last year.

A positive trading performance from high street fashion chain Next dominated corporate news, allaying investor fears that Christmas had been difficult for retailers.

Its shares ended the day on top of the Footsie risers, up ten per cent, or 120p, at 1260p.

Other retailers benefiting from renewed enthusiasm among investors were Tesco, up 7p at 260p, Dixons, 1p ahead at 138p and B&Q owner Kingfisher, rising 1p to 289.75p.

But Marks & Spencer dropped 5p to 279p on fears that Next may have benefited over Christmas at its expense.

Shares in Argos owner GUS climbed 13p to 791p, after it announced the sale of the US outsourcing business of its Experian credit checking section to a private equity firm for £15.4m .

But shoes and clothing retailer Alexon lost out after sluggish festive trading led to a one per cent fall in sales in the run-up to Christmas. Shares were down 7p at 285p.

Drugs companies were the big losers yesterday, with Shire Pharmaceuticals down 2p at 539p, GlaxoSmithKline off 21p at 1260p and AstraZeneca losing 31p at 2623p.

Elsewhere, Majestic Wine saw its shares rise 10p to 897p after announcing a 7.4 per cent rise in sales at its UK outlets during the festive period.