Britain's parliament voted against the risk of a "no-deal" Brexit, 24 hours after a second defeat for Prime Minister Theresa May's divorce agreement left Britain heading into the unknown. The U.S. dollar was down to 1.0032 Swiss francs from 1.0069 Swiss francs, and it decreased to 1.3303 Canadian dollars from 1.3362 Canadian dollars.
The rally in USA technology stocks continued, with Apple and Visa leading the pack as investors grew confident the Federal Reserve won't rush to raise rates.
The Bloomberg Dollar Spot Index advanced 0.3 percent, the first advance in a week.The euro declined 0.2 percent to $1.1309, the first retreat in a week.The British pound decreased 0.8 percent to $1.3226, the biggest dip in nearly eight weeks.The Japanese yen sank 0.4 percent to 111.64 per dollar, the weakest in more than a week on the largest decrease in nearly two weeks.The MSCI Emerging Markets Currency Index dipped 0.1 percent. US stocks have extended gains this week as economic data comes in neither too hot nor too cold, while traders in Europe on Thursday seemed to be shrugging off more warning signs from the region - perhaps because of hopes Brexit can be delayed or derailed.
Other data showed new orders for key USA -made capital goods rose by the most in six months in January and shipments also rose, but business spending on equipment remained soft, leaving forecasts for weak first-quarter economic growth intact. Immediate resistance can be seen at 1.3300 (Psychological Level), an upside break can trigger rise towards 1.3365 (61.8% retracement level).On the downside, immediate support is seen at 1.3273 (21 DMA), a break below could take the pair towards 1.3264 (50 DMA).
The euro declined 0.2 percent to $1.1306, the first retreat in a week. The U.S. central bank's rate-setting committee will issue its next policy statement following its March 19-20 meeting. The Japanese yen strengthened 0.19 percent versus the greenback at 111.17 per dollar.
U.S. stock market added to previous session gains on Tuesday led by the health care and utilities shares.
MSCI's gauge of stocks across the globe gained 0.51 percent while the FTSEurofirst 300 index of leading European shares closed up 0.69 percent.
British lawmakers voted by a margin of 43 to confirm their decision to reject any no deal Brexit on Wednesday. It jumped 2.1 percent for its best one-day percentage gain since April 2017 and was last at $1.3315.
U.S. Treasury yields rose after falling the previous session as risk appetite improved and equity markets steadied.
The rationale: Britain just can't seem to agree on a Brexit deal - and the uncertainty will keep bruising sentiment toward the most-volatile Group-of-10 currency this year, said Jingyi Pan, strategist at IG Asia Pte in Singapore.
In afternoon trading, USA 10-year note yields rose to 2.612 percent from 2.605 percent late on Tuesday.
Wednesday's vote boosted investor optimism in European equities too, with the pan-European STOXX 600 index climbing 0.6 percent while London's FTSE 100 added 0.1 percent as sterling extended gains.
USA crude rose $1.39 to settle at $58.26 per barrel and Brent settled up 88 cents at $67.55.
Gold futures slumped 1 percent to $1,296.40 an ounce.