Investing.com - The euro regained ground on Monday, recovering from a steep overnight decline after Greeks overwhelmingly rejected conditions for a bailout package from creditors in a referendum on Sunday.
EUR/USD was last at 1.1054, off 0.51% for the day after falling to one-week lows of 1.0970 overnight.
The result of the referendum has added to doubts over Greece’s future in the euro zone and deepened a standoff with its lenders.
European officials have indicated that they will only continue to finance Greece in return for far-reaching economic reforms.
Greek Prime Minister Alexis Tsipras welcomed the outcome of the vote and said Athens was returning to negotiations with the express goal of reopening banks, which have been shut for over a week after capital controls were imposed.
Without more emergency funding from the European Central Bank, Greece's banks are facing a cash crunch within days.
The ECB was to discuss whether to maintain emergency funding for Greek banks at their current restricted level later Monday.
Euro zone leaders were expected to hold a conference on Tuesday night to discuss the aftermath of the Greek referendum.
In a surprise move, Greek Finance Minister Yanis Varoufakis resigned on Monday, despite the referendum results.
In a statement, Varoufakis said his decision was prompted in part by “some European participants” expressing a desire for his part in any further negotiations to end.
The single currency was also weaker against the yen and the pound, with EUR/JPY last at 135.4, down 0.8% after falling as low as 133.91 earlier. EUR/GBP was at 0.7090, up from lows of 0.7056.
The euro was also slightly firmer against the Swiss franc, with EUR/CHF at 1.0420 from around 1.0357 earlier.
The threat of intervention to weaken the franc by the Swiss National Bank helped to support the euro.
The dollar was lower against the safe haven yen, with USD/JPY at 122.50, holding above overnight lows of 121.89.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 96.47.