The Australian dollar tumbled on Monday as the escalating likelihood of a Greek debt default ignited market caution.
European Union and International Monetary Fund negotiators rejected Greece’s request for extending a bailout offer after the June 30 deadline.
The Aussie stood at 69.44 euro cents from Friday’s 68.77 euro cents, and 76.43 US cents from 77.02 US cents.
Greece’s debt crisis is affecting investors’ risk sentiment… A lot of uncertainties surfaced as to whether the country has enough money to settle its debt “and as usual when there’s bad news in the world the Aussie dollar falls,” said Joseph Capurso, Currency Strategist at Commonwealth Bank of Australia.
Prime Minister Alexis Tsipras announced Greek banks will be shut until July 7, as well as imposed capital controls.
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