British Prime Minister Boris Johnson on Tuesday was defeated in a vote on his Brexit timetable.
Just minutes before the vote on the timetable motion, the government's Brexit bill was backed by a vote of 329 to 299 in the second reading in parliament, clearing its first hurdle. However, the timetable motion was rejected.
Earlier Tuesday, the prime minister told a parliament debate that he will pull the Brexit bill and push for an election if it is voted down by lawmakers.
He had vowed to take his country out of the European Union on Oct. 31 with or without a deal.
The pound and the euro lost some strength amid lingering uncertainty concerning Brexit, experts noted.
The dollar index, which measures the greenback against six major peers, was up 0.20 percent at 97.5249 in late trading.
In late New York trading, the euro decreased to 1.1123 U.S. dollars from 1.1146 dollars in the previous session, and the British pound decreased to 1.2882 dollars from 1.2966 dollars in the previous session. The Australian dollar was down to 0.6853 dollar from 0.6864 dollar.
The U.S. dollar bought 108.46 Japanese yen, lower than 108.59 Japanese yen of the previous session. The U.S. dollar rose to 0.9890 Swiss franc from 0.9855 Swiss franc, and it rose to 1.3097 Canadian dollars from 1.3084 Canadian dollars.