Investing.com - The euro slid lower on Thursday after Greece’s parliament passed harsh austerity measures demanded by the country’s creditors in order to secure a third bailout package.
EUR/USD hit lows of 1.0910, the weakest since June 1 and was last at 1.0934, off 0.14% for the day.
The vote cleared the way for negotiations on a third bailout package to begin, but also raised doubts over the future of Greek Prime Minister Alexis Tsipras' government after many lawmakers in his left-wing Syriza party voted against the deal.
Tsipras was expected to replace several ministers in a cabinet reshuffle later Thursday.
The eurogroup of euro zone finance ministers were to hold talks on the latest developments in Greece later Thursday.
Ahead of the Greek vote on Wednesday night, the French national assembly voted overwhelmingly in favor of starting negotiations for the third bailout. Germany’s Bundestag is set to vote on the plan on Friday.
Meanwhile, officials in Brussels were continuing efforts to assemble a €7 billion short-term financing package to keep Greece afloat until the new bailout can be finalized.
Demand for the dollar continued to be underpinned as the diminished threat of a Greek exit from the euro zone removed a potential obstacle from Federal Reserve plans to tighten monetary policy.
Fed Chair Janet Yellen reiterated Wednesday that the central bank was on track to raise interest rates by the end of the year if the economy continues to evolve as expected.
The dollar was steady near three-week highs against the yen, with USD/JPY at 123.80.
The euro was little changed against the Japanese currency, with EUR/JPY at 135.36.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was near six-week highs at 97.41.