British Prime Minister Boris Johnson was forced to write to the European Union (EU) late Saturday seeking another Brexit extension after MPs voted to postpone ratification of his divorce deal with the bloc.
By 322 to 306, lawmakers supported an amendment put forward by independent MP Oliver Letwin that will withhold parliamentary approval of Johnson's deal "unless and until implementing legislation is passed."
"Despite the additional letters that caused a stir, it all worked surprisingly smoothly. That in itself is GBP positive news," Ulrich Leuchtmann, analyst at Commerzbank Research said in a note.
The dollar index, which measures the greenback against six major peers, increased 0.04 percent at 97.3339 in late trading.
In late New York trading, the euro was down to 1.1146 dollars from 1.1160 dollars in the previous session, and the British pound increased to 1.2966 dollars from 1.2945 U.S. dollars in the previous session. The Australian dollar increased to 0.6864 dollar from 0.6853 dollar.
The U.S. dollar bought 108.59 Japanese yen, higher than 108.45 Japanese yen of the previous session. The U.S. dollar increased to 0.9855 Swiss franc from 0.9854 Swiss franc, and it was down to 1.3084 Canadian dollars from 1.3120 Canadian dollars.