The euro declined against the dollar on Monday after the European Central Bank President Mario Draghi said economic indicators signaled further weakness in the euro zone.

“Available indicators signal further weakness at the beginning of 2013, with domestic demand remaining dampened. This is due to weak consumer and investor sentiment and to the necessary balance sheet adjustments in both the public and private sectors. Foreign demand also remains subdued,” Draghi said in a statement before the European Parliament’s Committee on Economic and Monetary Affairs in Brussels.

Public and private sectors to continue to deleverage?