The euro dropped to a one-week low against the dollar as Greeks voted against yielding to further austerity, raising the risk of an exit from the currency union.

The common currency pared its losses as Finance Minister Yanis Varoufakis’s resignation boosted speculation Greece will reach a deal with its creditors. Sixty-one percent of Greek voters backed the rejection of further spending cuts and tax increases in a referendum, data on the Interior Ministry website show. The yen strengthened against most of its major peers as the crisis spurred demand for haven assets.

The euro fell 0.5 percent to $1.1056 at 5 p.m. New York time, having declined as much as 1.3 percent to reach $1.0970, the lowest level since June 29, after the announcement of the referendum. The shared currency weakened 0.7 percent to 135.52 yen. Against the dollar, the yen rose 0.2 percent to 122.57.

Source : Bloomberg