The dollar had strengthened earlier in the day against the pound, but some of those gains were reversed after the European Union agreed to London's request for a Brexit deadline extension but set no new departure date, giving Britain's divided parliament time to decide on Prime Minister Boris Johnson's call for a snap election. Against the pound, the dollar was up 0.19% to $1.283. Some focus will shift next week to the US Federal Reserve's two-day policy meeting.
The central bank is expected to announce on October 30 the third interest rate cut of the year. Money markets have largely priced in a quarter-percentage-point reduction, according to Refinitiv data. "I think the Fed is largely priced to deliver a cut. If it doesn't the dollar would benefit," said Jalinoos, "unless it is very dovish in not delivering a cut. If it delivers a cut and it sounds like it's the end of a cutting cycle, that would also be dollar positive."