The euro slumped against the dollar on Monday and more losses are seen ahead as new governments in Italy and Greece fail to assuage fears about the euro-zone sovereign debt crisis.

Italy paid a euro-era high price to sell five-year bonds on Monday, just a day after former European Commissioner Mario Monti was named to lead the country -- a move that had been hoped would help restore investor confidence.

News that Italian Treasury Director General Vittorio Grilli is considering resigning as early as Tuesday to take up a job in the private sector with investment bank J.P. Morgan, according to sources, added to the euro's woes.

In Greece, new Prime Minister Lucas Papademos, a former European Central Bank vice president, will have to win Wednesday's confidence vote in his cabinet before meeting euro-zone finance ministers in Brussels on Thursday, as uncertainty persisted over whether Athens will receive the next tranche of aid to avoid a default.