Sterling clawed back some of its recent losses on Tuesday as Prime Minister Theresa May sought to shore up her authority after two ministers quit over her hard-fought Brexit blueprint.
The pound's gains were limited, however, after official gross domestic product data proved in line with forecasts and a stronger dollar weighed on the currency.
Markets had welcomed May's official Brexit plans - unveiled on Friday - because they believe it makes a softer Brexit, in which Britain retains close trade ties with the European Union after its exit next year, more likely.
But the resignations of Foreign Secretary Boris Johnson and Brexit minister David Davis rattled May's grip and stirred talk of a leadership challenge less than nine months before Britain is due to depart the EU. Sterling tumbled more than a cent.
Sterling rose to as high as $1.3301 - roughly where it was on Friday before the resignations - until the weaker data and rallying dollar knocked it back to $1.3273, 0.1 percent up the day.
Against the euro, sterling extended gains, spurred on by weakness in the common currency. The pound stood 0.3 percent stronger at 88.350 pence per euro.
Source : Reuters