The pound declined against the dollar, extending its biggest drop since 2010.

Greece's central bank is unlikely to request an increase in emergency liquidity from the European Central Bank for weeks thanks to capital controls and cash inflows.

Britain's FTSE 100 was set to open flat to slightly higher on Friday, with futures up 0.1 percent ahead of the cash market open.

The euro fell on Monday, hurt by uncertainty over whether a near-bankrupt Greece can secure more funding as its European partners demanded tough reforms in return for throwing a life-line to the debt-strapped nation.

The Greek government has submitted economic reform proposals to try to secure a further bailout from its creditors, eurozone officials say.