Euro slides below $1.1 as financial markets react to Greek crisis

DAILY SABAH WITH AGENCIES
ISTANBUL
Published 29.06.2015 01:29
Updated 29.06.2015 02:14
Members of left wing parties burn a European Union flag during a protest in the northern Greek port city of Thessaloniki, Sunday, June 28, 2015 (AP Photo)
Members of left wing parties burn a European Union flag during a protest in the northern Greek port city of Thessaloniki, Sunday, June 28, 2015 (AP Photo)

The euro slumped below the $1.10 mark in early Asian trading after the Greek prime minister announced a referendum on the bailout negotiations, giving the signal that the pressure is unlikely to abate in the EU country.

Greek Prime Minister Alexis Tsipras' referendum call followed by news the European Central Bank won't increase the lifeline of emergency liquidity that has been sustaining Greece's banks set the stage for the euro's dip to $1.0998 in early New Zealand trading.

The trading had started in the Asian timezone, and the common currency promptly slid to a low of $1.0997a. By 5.45 a.m. Tokyo, the Euro was down 1.4 per cent at $1.101.

As fears mounted that Greece will be forced to implement capital controls that would restrict withdrawals from its stricken banking system, long queues of up to a hundred people formed outside some ATMs in Athens.

Since Friday night alone, 1.3 billion euros ($1.45 billion) have been withdrawn from the Greek banking system, according to the head of the bank workers' union Stavros Koukos.

A banking source in Greece said only 40 percent of cash machines now had money in them and a host of European governments advised citizens travelling to Greece to carry money with them.

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