The dollar is losing ground against all of its major competitors Monday. Early gains against both the Euro and the pound have eroded as concerns over a Greek default have eased a bit.

Negotiations between Greece and its creditors broke down over the weekend. The country faces a crucial 1.6 billion euro payment to the International Monetary Fund on June 30th. However, that is not a hard deadline. Greece will actually have another 30 days before it reaches default. During that time, negotiations may continue and a deal could potentially be reached.

Greek Prime Minister Alexis Tsipras called a July 5th referendum on the country’s bailout on Friday, taking its creditors by surprise.

The European Central Bank to decide not to raise the emergency funding it was providing the Greek banks following a conference call on Sunday. The current cap of the emergency liquidity assistance, a crucial life-line for cash-strapped Greek banks, is 89 billion euros.

Greece was forced to close its banks and imposed capital controls on Monday in order to avoid a financial collapse as the failure of debt talks with the EU makes it difficult to honor the payment due on June 30th.

The banks will remain closed until July 6th and a daily limit of 60 euros on cash withdrawals from ATMs is in place. The Greek stock market is set to remain closed this week as well as next, reports said.

Meanwhile, After reporting a sharp jump in U.S. pending home sales in the previous month, the National Association of Realtors released a report on Monday showing that pending home sales saw further upside in May. NAR said its pending home sales index climbed 0.9 percent to 112.6 in May from a slight downward revision of 111.6 in April. Economists had expected the index to rise by 0.6 percent.

A September rate hike is “very much in play,” according to William C. Dudley, president of the Federal Reserve Bank of New York.

“If the data continue to evolve in the way they have, I think September is very much in play,” Dudley said in an interview with the Financial Times published Sunday.

“If we hit 2.5 percent growth in the second quarter and it looks like the third quarter is shaping up for something similar, then I think you are on a firm enough track that you would imagine you would have made sufficient progress in our two tests, certainly by the end of the year,” Dudley told the Financial Times.

However, the prospect of a Greek exit from the euro zone is a huge “wild-card,” he said, warning that markets may react very badly if Greece defaults on sovereign debt.

The dollar surged to over a 3-week high of $1.0973 against the Euro Monday morning, but has since pulled back to around $1.1245.

Ahead of Greece crisis escalating over the weekend, Eurozone economic confidence fell slightly in June on a mild deterioration of industrial and retailer sentiment. The economic confidence index fell unexpectedly to 103.5 in June from 103.8 in May, survey data from the European Commission showed Monday. It was forecast to remain unchanged at 103.8.

Germany’s inflation slowed from a 7-month high in June, preliminary data from Destatis showed Monday. Consumer price inflation eased more-than-expected to 0.3 percent in June from 0.7 percent in May. Economists had forecast it to slow marginally to 0.5 percent. Nonetheless, this was the fifth consecutive rise in consumer prices.

The buck jumped to an early high of $1.5681 against the pound sterling Monday, but has since retreated to around $1.5735.

British mortgage approvals declined unexpectedly in May, data from the Bank of England showed Monday. The number of mortgages approved for house purchases fell to 64,434 from 67,580 in April. It was forecast to rise to 68,900.

The greenback has dropped to around Y122.555 against the Japanese Yen this afternoon, from around Y124 at the end of the prior trading week.

Industrial output in Japan tumbled a seasonally adjusted 2.2 percent on month in May, the Ministry of Economy, Trade and Industry said on Monday. That missed forecasts for a decline of 0.87 percent following the 1.2 percent increase in April.

Retail sales in Japan were up 3.0 percent on year in May, the Ministry of Economy, Trade and Industry said on Monday – standing at 11.769 trillion yen. That beat forecasts for an increase of 2.2 percent following the 4.9 percent gain in April.

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