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FOREX-Euro down 0.6 pct on month-end flows, clock ticks for Greece

* Euro broadly lower, month-end flows weigh

* Focus on Greek referendum on Sunday

* Market players keep a wary glance on equity volatility

By Anirban Nag

LONDON, June 30 (Reuters) - The euro fell on Tuesday on month-end flows and as investors braced for the near certainty that Greece will default on a repayment to the International Monetary Fund later in the day, putting the country at risk of an exit from the euro zone.

The euro fell 0.6 percent to $1.1170 as hedge funds stepped up sales. The currency had hit a four-week low of $1.0955 struck on Monday in reaction to concerns on the future of Greece and the euro zone. It was also down 0.8 percent against the yen.

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While global markets felt a jolt on Monday from the Greek chaos, it was far from panic and moves in the bond markets outside Greece were pretty much contained, keeping moves in the currency markets relatively calm, traders said.

With a default now looking inevitable, the focus was on how popular opinion takes shape in Greece before the country holds a referendum on Sunday to vote on whether the terms set by creditors for a bailout were acceptable.

"Month-end and quarter-end flows are positive for the dollar and most investors are waiting to see how the Greek referendum pans out and what the opinion polls are indicating," said Yujiro Goto, currency strategist at Nomura. "Medium term we are still short euro against the dollar."

Month- and quarter-end flows stem from global fund managers and investors rebalancing their currency exposure based on stock and bond market movements over the month or the quarter.

Traders said it may be unwise to read too much into moves driven mainly by these flows, with most staying to the sidelines to see how the Greek crisis pans out.

Some investors are harbouring hopes that Greeks will give their assent to the bailout terms, sending their government back to the negotiating table. Even (Taiwan OTC: 6436.TWO - news) that scenario is fraught with uncertainty as Prime Minister Alexis Tsipras suggested on Monday that he would resign if Greek voters accept a reform-for-aid deal that he had rejected.

"Many in the market had already factored in the likelihood of Greece defaulting. But there is no guarantee the stability will last," said Kyosuke Suzuki, director of forex at Societe Generale.

In a sign traders are expecting wild swings in coming days, implied volatility on one-week euro/dollar options rose further to around 18 percent from 16.5 percent late on Monday.

The yen was well-bid as investors remained risk-averse.

The dollar fell 0.25 percent to 122.22 yen, edging near five-week low of 122.11 yen hit on Monday. (Additional reporting by Hideyuki Sano; Editing by Andrew Heavens)