Sterling firmed a touch on Tuesday but held well off recent multi-month highs against the euro and dollar as traders weighed up whether lawmakers would back a key parliamentary amendment that would effectively take a no-deal Brexit off the table.
The UK parliament will debate and vote later in the day on Prime Minister Theresa May's response to the overwhelming rejection of her Brexit plan earlier this month.
However, sterling which recently scaled 2-1/2 month highs against the dollar at $1.3218 on optimism that no-deal Brexit would be avoided, has retreated from those levels and stood at $1.3171, up 0.11 percent on the day.
It hit a low overnight at $1.3130.
Source : Reuters