Investing.com - The euro remained broadly lower on Monday after last ditch talks between Greece and its international creditors collapsed without an agreement over the weekend.
EUR/USD was last at 1.1242 after falling as low as 1.1189 earlier.
Talks between Greece and European Union representatives on Sunday failed to reach an agreement on a financing deal, fueling fears over a debt default that would threaten Greece’s future in the euro zone.
Europe wants Greece to make spending cuts worth €2 billion in order to secure a deal that will unlock additional funds before its bailout expires at the end of June and it must repay €1.6 billion to the International Monetary Fund.
EU officials blamed the collapse in talks on Greece, saying it had failed to offer any new reforms to secure the funding it needs.
In a newspaper interview published on Monday Greece Finance Minister Yanis Varoufakis ruled out a Greek exit from the euro area, adding that debt restructuring was the only way forward.
Investors were looking ahead to a meeting of euro zone finance ministers on Thursday, which was being seen as Greece's last chance to strike a deal.
European Central Bank President Mario Draghi said Monday that a Greek default would be “uncharted waters,” but added that he believes policymakers have all the tools to manage the situation.
The single currency was also lower against the yen, with EUR/JPY slipping 0.18% to 138.75.
Meanwhile, the dollar was little changed against the yen, with USD/JPY at 123.41.
Investors remained cautious ahead of the outcome of Wednesday’s monetary policy meeting and rate statement by the Federal Reserve which will be watched for a clear signal on when it could start to raise interest rates.
The dollar showed little reaction after data showing that U.S. industrial production fell unexpectedly in May.
The Federal Reserve said industrial output fell 0.2% following a revised drop of 0.5% in April.
Another report showed that U.S. homebuilder sentiment rose to its highest level since September this month.
The National Association of Home Builders said its housing market index rose to 59 from 54 in May, compared to expectations for a reading of 56.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.12% to 95.36.