On Tuesday the euro was weaker in Asia, as financial markets prepared for Greek debt default.
The outcome of the referendum due on July 5 is the main focus now with Greece's Tsipras hinting at resigning in case citizens vote 'Yes'.
EUR/USD traded at 1.1166, down 0.63%.
USD/JPY was last at 122.41, down 0.11%.
Markets were volatile, as last-minute telephone calls did not reach a breakthrough on Greece's debt package by early Tuesday in Asia.
The outcome of
a planned July 5 referendum is now the main focus for markets.
Without an unlikely last minute deal the bailout will end and €7.2bn which would have been paid by its creditors, the European Commission, the European Central Bank and the IMF, will be off the table.
Tsipras’s decision to hold the vote jolted the financial system so badly
that the Greek now have to cope with a new reality of capital controls that have locked their savings inside the country’s banks.
Last night Tspiras made a television appeal to the country's citizens to vote against the austerity package he sees as being imposed on the country, arguing it would strengthen negotiations with its creditors. Rallies took place in Athens and elsewhere in support of a no vote.
Greece's Prime Minister Alexis Tsipras hinted Monday he might resign if the Greek people vote in favour of the creditors' proposal.
"If the (Greek) people vote yes, then
the referendum outcome will be completely respected but I will not serve
it" Tsipras said in a television interview.
"I'm not an all weather prime minister. I will respect the verdict and prepare the ground as outlined by the constitution and the parliament."
But European leaders lined up to call the referendum a vote on whether Greece would stay in the euro or leave, piling more pressure on Tsipras and his colleagues.
“The exit from the euro zone, which was a theoretical point, can unfortunately no longer be excluded,” European Central Bank Executive Board member Benoit Coeure said in an interview with Les Echos published late Monday.
“The question is political. The response to that question, it’s the Greeks who have it,” Coeure said. “If the response is ‘yes,’ I have no doubt about the fact that the authorities of the euro zone will find the means, under one form or another, to honor their commitments.”
As the Daily Telegraph reports, Greece is threatening a court injunction against the EU institutions to block any exit from the eurozone.
“The Greek government will make use of all our legal rights,” said the finance minister, Yanis Varoufakis.
“We are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable,“ he told the Telegraph.
