Euro exchange rates fall early on Monday after Greece failed to strike a deal with its international lenders to secure more emergency funding during the weekend. EUR dropped to a one-month low against the USD, trading at $1.0990. Concerns about a liquidity crunch at the Greek banks rose after the country's financial stability council recommended keeping banks shut for the next six working days. A failure by Greece to repay a 1.6 billion-euro debt owed to the IMF by a deadline on Tuesday could lead to its exit from the euro zone, which many investors fear may fatally weaken the entire currency bloc.
The prospect of a Greek default has risen after Athens effectively rejected proposals made by its European lenders in exchange for more credit at last-minute bailout talks during the weekend.
U.S. crude futures fell as much as $1 in early trade after the worrying news from Greece and western officials saying a deal on Iran's disputed nuclear programme might be hard to achieve. Safe-haven U.S. government debt futures rallied as investors exhibited fears of a Greek default and exit from the euro zone.