The euro tumbled across the board on Monday, but was off the lows of the day, after Greece voted to reject the conditions tied to the troubled country's debt bailout deal. The resignation of Greek Finance Minister Yanis Varoufakis, however, was positive news for Greece, removing a "constant thorn" to any deal with the country's creditors, said Dennis de Jong, managing director at FX.com. Varoufakis' exit partly prompted a comeback in the euro, analysts said. The euro dropped to a one-week low against the dollar below $1.10, and skidded to a six-week trough versus the yen immediately following the "No" outcome. The euro, however, has since stabilized in the London and New York sessions.
Sterling climbed against the dollar and euro on Monday after Greek voters emphatically rejected terms of a rescue package, boosting safe-haven flows into Britain's currency. The euro showed little sense of panic selling, amid expectations the European Central Bank would take action to stabilize the market if necessary and hold emergency funding to Greek banks at the same level as last week.
Oil prices suffered their biggest selloff in five months on Monday, falling as much as 8 percent as Greece's rejection of debt bailout terms and China's stock market woes set off a deepening spiral of losses. Adding to the pressure on oil, Iran and global powers were trying to meet a July 7 deadline on a nuclear deal, which could bring more supply to the market if sanctions on Tehran are eased. The self-imposed deadline could be extended again, officials at the negotiations said.