The pound struggled near a 20-month low against the dollar on Tuesday after British Prime Minister Theresa May postponed a crucial vote on her Brexit deal.
Sterling was little changed at $1.2565 after slumping 1.3 percent the previous day, when the currency brushed $1.2507, its lowest since April 2017.
May on Monday postponed a parliamentary vote, which was due to take place on Tuesday, on her Brexit deal to seek more concessions. The move stoked more uncertainty as Britain now faces Brexit without a deal, a last-minute agreement or another EU referendum.
The pound's slide was a boon for the dollar, which rallied back from a 2-1/2-week low against a basket of currencies initially driven by a growing view the Federal Reserve could pause its rate hike cycle sooner than previously thought.
Source : Reuters