The euro is likely to face further declines this week as concern over sovereign debt in Europe prompts investors to seek refuge in the perceived safety of the dollar and the yen.

Pressure on the common currency escalated last week, as worries about the soundness of debt issued by Greece spread to other fiscally stressed euro-zone nations, including Portugal and Spain.

Over the weekend, at a meeting of finance ministers of the Group of Seven leading economies in Iqaluit, Nunavut, in Canada, European leaders pledged to ........