TOKYO: The euro fell almost 2 per cent and share prices tumbled across Asia on Monday as Greece looked set to default on its debt repayment this week, forcing Athens to impose capital controls to halt bank runs.
With the prospect of Greece being forced out of the euro in plain sight, the common currency fell as much as 1.9 per cent to $1.0955, its lowest in almost a month, and last stood down 1.4 per cent at $1.1007.
Against the yen, the common currency dropped more than 3 per cent to 133.80 yen, a five-week low.
U.S. stock futures dived almost 2 per cent at one point to hitting a three-month low, and last traded down 1.6 per cent.
Japan’s Nikkei fell 2.1 per cent while MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.8 per cent, drawing little help from more policy easing from China’s central bank at the weekend.
Chinese stocks have plunged over 20 per cent in the last two weeks, hit by tight liquidity conditions ahead of the quarter-end and uncertainty over the central bank’s monetary policy.
