Sterling fell on Tuesday as British lawmakers rejected most amendments seeking for Britain to avoid leaving the European Union without a deal, reviving worries of a chaotic withdrawal from the trading bloc that would damage the UK economy.

Lawmakers failed to pass several proposals that take a “no-deal” Brexit off the table. Instead they voted to instruct Prime Minister Theresa May to demand from the EU to replace the Irish border arrangement as a part of Brexit, but Brussels said it will not change.

In late trading on Tuesday, the pound fell 0.71 percent to $1.3062, retreating further after hitting its highest since mid-October last week.

The euro jumped 0.80 percent at 87.53 pence, reversing its earlier fall prior to the amendment votes.

The euro zone single currency was little changed at $1.1433 and marginally higher at 125.09 yen.

The dollar, euro, yen and other major currencies were locked in narrow trading ranges, with traders reluctant to take big positions due to uncertainty over the UK parliamentary vote.

 

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