Sterling was steady on Wednesday, lingering below a six-week high against the dollar reached on Monday, as investors assessed the chances Prime Minister Boris Johnson can strike a Brexit deal with the European Union before Oct. 31.
The probability of a no-deal Brexit was still very much a concern for traders, given that Johnson stood firm on taking Britain out of the EU by the end of next month.
But the British parliament approved legislation which forces Johnson to request a deadline extension from Brussels if he cannot agree on a deal with the EU by mid-October.
Investors, calculating that the risk of no-deal Brexit is receding after the law passed, have pushed sterling from under $1.20, the three-year low it reached early last week, to as high as $1.2385 on Monday.
By 14:45 GMT on Wednesday, sterling was at $1.2347, down 0.1% . Against the euro, however, the pound gained 0.3% to 0.8907 .
Source : Reuters