Euro weakens after Greece urges creditors to ease demands

The euro weakened after Greece told creditors to lower demands that are holding up bailout funds. Emerging-market stocks fell as speculation grew the U.S. was moving closer to raising interest rates, while Polish equities slid the most in four months and Spanish markets dropped.

Europe’s currency slid 0.3 per cent to US$1.0980 at 3:56 p.m. in New York. The MSCI Emerging Markets Index of stocks fell 0.5 per cent.

Poland’s stocks sank after an opposition candidate won the presidency, while Spanish shares retreated as local elections showed support for parties seeking to overturn the status quo. Chinese equities jumped to a seven-year high. Standard & Poor’s 500 Index futures slipped 0.1 per cent. The Bloomberg Dollar Spot Index rose to a one-month high.

Markets in the U.S. and U.K. were among those closed on Monday.

Greek Prime Minister Alexis Tsipras said over the weekend the country can’t accept crushing austerity, while Interior Minister Nikos Voutsis, who has no economic decision-making powers, went so far as to say Greece couldn’t and wouldn’t pay the International Monetary Fund in June without a deal.

Federal Reserve Chair Janet Yellen said on Friday she expected to raise interest rates this year after a report showed core inflation climbed more than forecast in April.

“There is ongoing euro negativity in the light of the Greek comments about the June 5 payment, while markets consider the dollar in the light of the Yellen warnings on rates on Friday,” said Jeremy Stretch, the head of currency strategy at Canadian Imperial Bank of Commerce in London. “It should be relatively quiet in view of the lack of data and market liquidity.”

The euro declined against 13 of its 16 major peers. It slid as much as 0.5 per cent to 70.73 British pence, the weakest level since March 12.