Azernews.Az

By Bloomberg

The euro fell for a second day after Greece missed a payment to the International Monetary Fund and the bailout that’s kept the nation afloat expired.

While stocks and bonds were supported by speculation a last-minute rescue will still be put in place, Europe’s single currency declined versus all but one of its 16 major peers. German Chancellor Angela Merkel ruled out a resumption of bailout talks until after the July 5 referendum, which was called by the Greek government to put creditors’ reform demands to the people.

“The latest developments regarding Greece have increased downside risks for the euro,” said Lee Hardman, a foreign- exchange strategist at Bank of Tokyo-Mitsubishi UFJ Ltd in London. “So far, the impact has been mainly to lift euro volatility. If there’s a ‘No’ vote in the referendum this Sunday, as suggested by the latest opinion polls, the euro could come under more downward pressure.”

The euro dropped 0.4 percent to $1.1107 as of 9:13 a.m. London time, after sliding 0.8 percent on Tuesday and advancing 3.9 percent last quarter.

Implied one-month volatility, a measure of anticipated price swings in the euro-dollar exchange rate, climbed to 13.5 percent, compared with an average for this year of 11.8, data compiled by Bloomberg show.

Europe’s currency slipped 0.3 percent to 136.11 yen. That’s its fifth day of declines and its longest run of losses in 2 1/2 months.