Euro Drops After Italian Bond Sale; Yen Approaches Record High

The euro declined from almost a seven-week high against the dollar and yen as a rise in Italian borrowing costs raised concern European Union leaders haven’t done enough to stem the region’s debt crisis.

Europe’s currency weakened after posting its biggest gain in more than a year against the greenback yesterday, when leaders announced a way to prevent a Greek default and safeguard banks. Brazil’s real was the best performer among major counterparts as the central bank sold dollars. The yen climbed toward a postwar record against the dollar, spurring bets Japan will intervene to weaken its currency.