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Sterling rose on Wednesday after U.K. lawmakers rejected the idea of leaving the European Union without a Brexit deal in place.
The pound was up 1.42 percent against the dollar at $1.3257.
Britain's parliament voted at 3:00 p.m. EST against the risk of a "no-deal" Brexit, 24 hours after a second defeat for Prime Minister Theresa May's divorce treaty left Britain heading into the unknown.
Investors expected that British lawmakers would resoundingly vote against leaving the European Union in 16 days' time without a transition agreement.
The vote Wednesday set up a vote for Thursday on delaying Britain's EU departure, a move that could bolster the pound because investors say it would increase May's chances of securing a deal or even lead to Brexit being called off altogether if a second referendum is held.
The pound has swung wildly in the last 48 hours between $1.30 and $1.33 and the currency has at junctures been at its most volatile since the June 2016 Brexit referendum.
Earlier, sterling's gains were spurred earlier by a BBC media report that Attorney General Geoffrey Cox had further legal advice which might help May win over lawmakers to her Brexit deal.