The euro continued weaker in Asia on Monday as central banks and
financial officials around the region from Japan and Australia as well
as earlier in the United States moved to assure markets they were
monitoring the fallout from the collapsed Greece debt talks and ready to
act if needed.
EUR/USD traded at 1.1021, down 1.29%, while USD/JPY changed hands at 123.00, down 0.69%. AUD/USD changed hands at 0.7636, down 0.27%.
Greece's banks and stock exchange are expected to remain closed throughout the week following a recommendation from the country's Financial Stability Council late Sunday, according to reports.
The move came just hours after the European Central Bank froze Emergency Liquidity Assistance (ELA) support to the country's banks at levels agreed on June 26 - a figure estimated to be around €90 billion.
"The Governing Council is closely monitoring the situation in financial markets and the potential implications for the monetary policy stance and for the balance of risks to price stability in the euro area," the ECB said in a statement. "The Governing Council is determined to use all the instruments available within its mandate."
At the weekend, Greece's parliament approved a move put forth by Prime Minister Alexis Tsipras for a national referendum that will decide the fate of the country's bailout negotiations on July 5.
The poll effectively ended stalled talks in Brussels and likely ensures that Greece will be unable to make a "bundled" €1.55 billion payment to the International Monetary Fund on Tuesday - the same day its current (extended) bailout program expires.
Later, U.S. Treasury Secretary Jack Lew spoke to Greece Prime Minister Alexis Tsipras Sunday and stressed the need for all sides to continue to work towards a solution.
In Japan, industrial production fell 2.2% month-on-month in May, more than the 0.8% expected decline, while retail sales rose 3.0%, better than the 2.3% gain seen in May year-on-year.
Also reported were remarks from Bank of Japan Governor Haruhiko Kuroda who said the central bank is alert to downside risks to its aims to anchor 2% inflation by the first half of fiscal 2016.
Japan's consumer inflation has slipped back to around zero due partly to "the temporary influence of low oil prices," he told a panel discussion at an annual general meeting of the Bank for International Settlements in Switzerland. His remarks were released Monday.
"While our projection is that inflation will be in the neighborhood of 2% most likely around the April-September period of 2016, the risks to that scenario cannot be ignored, particularly when the global economy is full of uncertainty, including over geopolitical factors," Kuroda said.
EUR/USD traded at 1.1021, down 1.29%, while USD/JPY changed hands at 123.00, down 0.69%. AUD/USD changed hands at 0.7636, down 0.27%.
Greece's banks and stock exchange are expected to remain closed throughout the week following a recommendation from the country's Financial Stability Council late Sunday, according to reports.
The move came just hours after the European Central Bank froze Emergency Liquidity Assistance (ELA) support to the country's banks at levels agreed on June 26 - a figure estimated to be around €90 billion.
"The Governing Council is closely monitoring the situation in financial markets and the potential implications for the monetary policy stance and for the balance of risks to price stability in the euro area," the ECB said in a statement. "The Governing Council is determined to use all the instruments available within its mandate."
At the weekend, Greece's parliament approved a move put forth by Prime Minister Alexis Tsipras for a national referendum that will decide the fate of the country's bailout negotiations on July 5.
The poll effectively ended stalled talks in Brussels and likely ensures that Greece will be unable to make a "bundled" €1.55 billion payment to the International Monetary Fund on Tuesday - the same day its current (extended) bailout program expires.
Later, U.S. Treasury Secretary Jack Lew spoke to Greece Prime Minister Alexis Tsipras Sunday and stressed the need for all sides to continue to work towards a solution.
In Japan, industrial production fell 2.2% month-on-month in May, more than the 0.8% expected decline, while retail sales rose 3.0%, better than the 2.3% gain seen in May year-on-year.
Also reported were remarks from Bank of Japan Governor Haruhiko Kuroda who said the central bank is alert to downside risks to its aims to anchor 2% inflation by the first half of fiscal 2016.
Japan's consumer inflation has slipped back to around zero due partly to "the temporary influence of low oil prices," he told a panel discussion at an annual general meeting of the Bank for International Settlements in Switzerland. His remarks were released Monday.
"While our projection is that inflation will be in the neighborhood of 2% most likely around the April-September period of 2016, the risks to that scenario cannot be ignored, particularly when the global economy is full of uncertainty, including over geopolitical factors," Kuroda said.
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