Euro slides against the dollar as Greeks vote "no" in referendum

Jessica Morris
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The euro plunged against the dollar (Source: Getty)

The euro fell sharply against its major peers as the Greeks look set to overwhelmingly reject more austerity measures in return for unlocking funding that it so desperately needs.

The single currency initially fell by 1.4 per cent against the greenback however it later recovered losses slightly to trade at $1.09992.

It's been nearly five hours since the polls closed, and nearly 90 per cent of the votes have been counted, with 61.46 per cent voting "no" and 38.54 per cent voting "yes".

Greek prime minister Alexis Tsipras has said that the "no" vote is not a mandate for Greece to leave Europe, however it does give the government "greater negotiating strength".

Read more: Greek voters set to reject bailout offer

Greece's Syriza party came to power in January promising to end Greece’s bailout, which was a cheap loan Athens was granted on the condition that it undertook reforms and cut its government’s debt.

The cash-strapped country had been locked in talks with its "troika" of creditors over a list of economic reforms since February before it unexpectedly called a referendum.

Meanwhile the European Commission has said that President Juncker is in talks with Eurozone leaders as well as the heads of its institutions and will address the European Parliament on Tuesday.

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