The euro slipped with emerging-market currencies as Greek voters’ rejection of austerity sent investors to the relative safety of Treasuries and the yen. Chinese stocks pared gains amid intensifying efforts to arrest a $3.2 trillion selloff.
The euro was weaker against all 16 major peers by 12:30 p.m. in Tokyo, dropping at least 0.5 percent versus the dollar and gold, and 0.9 percent to the yen. The yield on 10-year Treasuries plunged 10 basis points, while rates on Australian and Japanese notes also fell. Asian shares outside mainland China dropped with U.S. index futures amid the flight to safety. The Shanghai Composite Index advanced 2.3 percent after the government joined with brokerages to defend the equity market. Malaysia’s ringgit fell to a 10-year low.
Sixty-one percent of Greek voters rejected austerity measures demanded by creditors for a bailout package. Greece’s exit from the currency union is now the base-case scenario, JPMorgan Chase & Co. said, with European leaders calling for a summit. China suspended initial public offerings and brokerages pledged to buy shares in weekend measures aimed at halting the steepest plunge in local stocks since 1992.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.