New York, Sep 4 (IANS): The US dollar fell on Tuesday amid the rebounding British pound, as British Prime Minister Boris Johnson on Tuesday lost a key Brexit vote in the House of Commons, easing fears over a potential no-deal Brexit.

The British government was defeated by a margin of 27 votes as rebel lawmakers seize the control of the parliamentary agenda on Wednesday, which will allow a debate on a bill to block a no-deal Brexit, the Xinhua news agency reported.

The outcome of parliamentary vote is seen as a heavy blow to Johnson, who vowed to take his country out of the European Union (EU) on October 31 with or without a deal, despite strong opposition from rebel Tory and opposition MPs.

With rebel alliance taking control of the parliamentary business, it is expected that a bill seeking to delay the UK's departure from the EU beyond October 31 will be brought forward.

The dollar index, which measures the greenback against six major peers, was down 0.04 per cent at 98.9947 in late trading.

In late New York trading, the Euro fell to $1.0966 from $1.0970 in the previous session, and the British pound increased to $1.2085 from $1.2067 in the previous session. The Australian dollar increased to $0.6760 from $0.6716.

The dollar bought 105.99 Japanese yen, lower than 106.19 Japanese yen of the previous session. The dollar fell to 0.9874 Swiss franc from 0.9904 Swiss franc, and it decreased to 1.3326 Canadian dollars from 1.3328 Canadian dollars.