The euro dropped to a five-week low against a buoyant U.S. dollar on Tuesday, after the European Central Bank tightened lending conditions for Greek banks, raising concerns the lenders could run out of cash. The ECB left emergency liquidity aid for Greek banks at current levels but increased the collateral it demands. That fueled fears Greece's problems will spread to other southern European countries as well.
Gold fell to a near four-month low on Tuesday as the dollar climbed ahead of an emergency euro zone summit on Greece with the country's banks rapidly running out of cash. Gold, usually seen as an alternative investment in times of financial and economic uncertainty, has so far failed to see significant safe-haven buying due to the ongoing Greek crisis as fears of contagion seem to be limited, traders said.
U.S. crude oil prices fell for a second straight day on Tuesday as worries about Greece and China's stock market losses sparked an investor flight to safe havens, and technical selling threatened to push oil further into a bear market. Also weighing on crude prices was Iran's determination to seal a nuclear deal with global powers to bring more supply to the market and the restart of a key oil terminal in Libya.