The FTSE 100 has finally surpassed an all-time high set in 1999 on comments from the US Federal Reserve chief Janet Yellen and news that a deal on Greece's bailout is drawing closer.
Britain's blue-chip index pushed passed its record intraday high of 6950 points just after 4pm, following Yellen's testimony to US lawmakers that the country is still some way off achieving its inflation target.
Euro zone finance ministers earlier rubber stamped reform proposals submitted by Greece, paving the way for a four-month extension of the struggling nation's rescue loan agreement.
A collapse in the oil price, which has halved since reaching a peak last summer, has also been supportive of the index in the last few weeks.
The FTSE 100 set a new intraday high of 6,954.79 before falling back and closing at 6953.12 points, up 40.96 or 0.6% on the day.
"There’s been a whole bunch of issues in play today that have aligned to help drive the FTSE-100 past those all time highs, but arguably the credit has to go to Janet Yellen for giving a far more dovish view of US monetary policy than some may have expected," said Trustnet Direct market analyst Tony Cross.
