The euro was broadly lower on Tuesday as investors braced for the near certainty that Greece will default on a repayment to the International Monetary Fund, while short-covering and uncertainty ahead of a key referendum capped losses.
The euro was last down 0.77 percent against the dollar at $1.1148. While Greece was set to default on a 1.6 billion euro loan from the IMF, traders who had bet against or "shorted" the euro continued to repurchase the currency after it rallied on Monday from a four-week low $1.09550 to a nearly one-week high of $1.12790.
The focus was also on how popular opinion takes shape in Greece before it holds a referendum Sunday to vote on whether the terms set by creditors for a bailout were acceptable. The recently announced referendum took many traders by surprise and has prolonged uncertainty over Greece's economy.
The deadline for the payment to the IMF expires Tuesday at 6 p.m. time in Washington (2200 GMT).