Euro under pressure after Greece warns it could fail to meet IMF repayment

Single currency loses ground against dollar as leading Greek politicians say the country may default if a deal with creditors is not reached

The euro has come under pressure on the foreign exchanges after leading Greek politicians warned the country would be unable to make its next debt repayment to the International Monetary Fund (IMF) on 5 June without a rapid deal with its creditors.

At the start of a crucial two-week period for Greece, the credit rating agency Moody's said there was a high and increasing risk that the crisis stricken country would have to impose capital controls to stem capital flight from its banks.

Related: Greece faces growing risk of capital controls, with IMF repayment in doubt - live updates