The euro plummeted on Monday after Greece failed to seal an agreement with its creditors, a step closer towards a debt default which could lead to eurozone exit.
The likelihood of a debt default seemed greater following the European Central Bank froze funding support to the country’s banks. Hence, the Greek government imposed capital control and shut its banks.
Against the US dollar and the Japanese yen, the common currency closed at $1.1018 from Friday’s $1.1165, and ¥135.60, respectively.
There seemed to have a market consensus something won’t be done for Greece, “so it was a rare occasion when the market takes position for the optimistic view,” said Bart Wakabayashi, Head of Foreign Exchange at State Street Global Markets.
On Tuesday, Greece is scheduled to give €1.6 billion payment to the International Monetary Fund.
The material has been provided by InstaForex Company – www.instaforex.com