Italian prime minister stepping down

Following a rejection of proposed constitutional changes by voters, Italian Prime Minister Matteo Renzi announced his resignation.

The prospect of instability in the eurozone's third-biggest economy saw the euro drop about 1 percent against the dollar to around $1.05 in Asia trade, its lowest level in 20 months. The losses were made up later in the day.

It's unclear what happens next in Italy. Renzi's party may be asked to form a new government, perhaps in coalition with the center right. If all else fails, there may be early elections in 2017.

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