LONDON (Reuters) - Sterling rallied against the dollar and the euro while stock futures dipped on Tuesday on media reports that Prime Minister Theresa May will propose formally ruling out a no-deal Brexit.
As the United Kingdom's Brexit crisis goes down to the wire, May is making a last-ditch effort to get changes to the divorce package but lawmakers will try on Wednesday to grab control of Brexit in a series of parliamentary votes.
Against the euro, the pound rallied nearly half a percent to a one-month high at 86.31 pence. It also gained 0.4 percent against the dollar at $1.3160.
Futures for Britain's FTSE 100 index fell to a two-week low as the pound rallied. The exporter-heavy index tends to suffer when sterling gains.
(Reporting by Saikat Chatterjee and Helen Reid, Editing by Abhinav Ramnarayan)