Investing.com - The dollar was broadly higher against a basket of other major currencies on Monday, as mounting concerns over a potential Greek default dampened risk sentiment, boosting demand for the safe-haven greenback.
EUR/USD dropped 0.47% to 1.1112 after last ditch Greek debt negotiations broke down over the weekend, bringing the country a step closer to a debt default ahead of a looming deadline for a repayment to the International Monetary Fund on Tuesday.
Greece’s bailout is due to expire on Tuesday, the same day that Athens is due to repay €1.6 billion to the IMF, but without a rescue package in place Greece will almost certainly default.
Greek Prime Minister Alexis Tsipras abandoned negotiations with creditors on Saturday and called for a referendum to be held on July 5 on the terms proposed by lenders for extending the country’s bailout.
European finance ministers refused a request from the Greek government to extend the bailout program until after the referendum.
A Greek official said Monday that banks would remain closed for six days starting on Monday to avert a crisis in the banking sector after deposit outflows accelerated over the weekend. Withdrawals at ATM machines were to be limited to €60 a day per account.
The dollar also remained supported after data on Friday showed that consumer sentiment jumped higher this month, bolstering the outlook for higher interest rates.
The final reading of the University of Michigan's consumer sentiment index rose to 96.1 from 90.7 in May and up from the preliminary reading of 94.6.
The pound was also lower, with GBP/USD down 0.32% to 1.5699.
Data earlier showed that total U.K. net lending to individuals increased by ₤3.1 billion last month, below forecasts for ₤3.3 billion and up from ₤2.9 billion in April.
Elsewhere, the dollar was lower against the yen, with USD/JPY down 0.77% to 122.89 and higher against the Swiss franc, with USD/CHF rising 0.31% to 0.9358.
The Australian dollar was steady, with AUD/USD at 0.7566, while NZD/USD slid 0.26% to fresh five-year lows of 0.6826.
USD/CAD added 0.28% to trade at 1.2355.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.23% at 95.82.