By Patrick Graham
LONDON, July 1 (Reuters) - The euro dipped again on Wednesday after Greece became the first advanced economy to default on an IMF loan and a raft of economic data may distract investors only briefly from last-ditch efforts to keep the country in the single currency.
Some dealers said a fall in Spain's purchasing managers index had prompted some euro losses in early European trade.
But while the mood on major currency markets remains tense, the action was limited as traders await a weekend vote by Greeks on whether to accept bailout conditions for international aid.
Strategists at a number of international banks have said the euro will fall sharply if it finally becomes clear Greece is leaving the bloc, but there has been little price action to support that thesis so far.
The euro dipped almost half a cent in Asian trade after the IMF said formally that Greece was "in arrears" but retrieved some of those losses to stand down 0.4 percent early in Europe.
"I think the risk is the euro goes up today," said Adam Myers, senior currency strategist at Credit Agricole in London.
"There is an outside chance that we get some sort of deal to prevent the referendum and the euro would obviously see a relief rally on that. I think most people are aware now that Greece is such a small part of euro zone GDP that the effect will be relatively limited if it leaves."
By 0730 GMT, the common currency was trading at $1.1115 , in the middle of a broader range it has held since late April.
Against the yen, which has been the obvious target of capital seeking a safe haven from the Greek worries, the euro stood almost flat at 136.28, after having fallen nearly 1 percent on Tuesday.
German Chancellor Angela Merkel has ruled out further negotiations with Athens until after Sunday's referendum but euro zone finance ministers are due to confer again late in the European afternoon (1530 GMT).
The biggest mover among major currency pairs was the New Zealand dollar, gaining half a percent to $0.6795 with dealers citing gains for some Asian stock markets as one driver.
The kiwi and the Australian dollar have both suffered from the economic weakness in China that has helped drive a sell-off on markets there. Shanghai was down another 5 percent on Wednesday, but Hong Kong and other indices were higher.
"There was some interest from exporters to buy dollars this morning, but Greece is still the biggest driver in all this," said one London-based trader in the kiwi.
(Editing by Catherine Evans)