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Dollar index rises to 1-month highs in risk-off trade

Published 07/06/2015, 08:24 AM
© Reuters.  Dollar hits 1-month peak vs. other majors on Greek bailout vote
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Investing.com - The dollar rose to one-month highs against a basket of other major currencies on Monday, as risk sentiment broadly weakened after Greek voters overwhelmingly rejected conditions of a rescue package from creditors on Sunday.

EUR/USD dropped 0.87% to 1.1015 after the result of the Greek referendum added to doubts over the country's future in the euro zone and deepened a standoff with its lenders.

European officials have indicated that they will only continue to finance Greece in return for far-reaching economic reforms.

Greek Prime Minister Alexis Tsipras welcomed the outcome of the vote and said Athens was returning to negotiations with the express goal of reopening banks, which have been shut for over a week after capital controls were imposed.

Without more emergency funding from the European Central Bank, Greece's banks could run out of cash within days.

Euro zone leaders were expected to hold a conference on Tuesday night to discuss the aftermath of the Greek referendum.

Earlier Monday, official data showed that German factory orders fell 0.2% in May, compared to expectations for a 0.4% decline. Factory orders increased by 2.2% in April, whose figure was revised from a previously estimated 1.4% gain.

The pound was also lower, with GBP/USD down 0.12% to 1.5552.

Elsewhere, the dollar was steady against the yen, with USD/JPY at 122.74 and higher against the Swiss franc, with USD/CHF gaining 0.68% to 0.9464.

Data on Monday showed that Switzerland's consumer price index rose 0.1% in June, beating expectations for a 0.1% downtick, after an increase of 0.2% the previous month.

Year-on-year, Swiss consumer prices declined by 1.0% last month, compared to expectations for a 1.2% drop and after a 1.2% slide in May.

The Australian dollar was lower, with AUD/USD down 0.27% at six-year lows of 0.7596, while NZD/USD edged up 0.10% to 0.6698, just off five-year lows of 0.6652 hit earlier in the session.

USD/CAD advanced 0.43% to trade at 1.2626, near last week's two-and-a-half month highs of 1.2633.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.40% at 96.76, the highest level since June 8.

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