NEW YORK (CNNMoney.com) -- The euro kept falling against the dollar Monday, after plummeting below $1.20 and posting fresh four-year lows late last week.
What prices are doing: In global trading Monday, the euro slipped as much as 0.8% against the dollar to $1.1877 but then pared back some of those losses to trade around 0.2% lower against the greenback in the afternoon.
Europe's shared currency closed below $1.20 for the first time in four years on Friday, after bleak economic statements out of Hungary and disappointing economic reports in the United States stoked fears about a global recovery.
Recent losses have put the euro near $1.18, where it traded when it debuted as a currency on Jan. 4, 1999.
Meanwhile, the dollar fell about 0.2% against the British pound to $1.448 and was flat against the Japanese yen at ¥91.88.
What's moving the market: Still fragile from the euro's big losses last week, most European stock markets declined early Monday on continued concerns about the region's debt crisis. The $1.20 mark is considered a key technical level for the euro, with prices below that level likely triggering further sell-offs, analysts say.
In a meeting of G20 finance and bank officials in Busan, South Korea, over the weekend, European Central Bank President Jean-Claude Trichet said the euro still has "remarkable" resilience and called the idea of a possible double-dip recession not credible.
But those optimistic comments weren't enough to curb the euro from staying in its $1.18 to $1.20 range Monday, said Phil Streible, senior market strategist with futures broker Lind-Waldock. He expects the euro to teeter around those levels until any other major news breaks out of Europe.
Fears about Europe's economic instability stalling a global economic recovery have caused the euro to tumble more than 12% against the dollar over the last three months, as those worries send investors flocking to the safe-haven appeal of the dollar. The greenback is considered a low-risk investment compared to foreign currencies, so it often gains in times of economic uncertainty.
Looking ahead: Currency traders will be watching for any monetary policy changes announced at a meeting between European Central Bank officials on Thursday in Frankfurt. While the euro is at four-year lows, it may not have reached policymakers may say it has yet to reach "emergency" levels, said Kathy Lien, director of currency research at Global Forex Trading.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.39%||3.41%|
|15 yr fixed||2.67%||2.68%|
|30 yr refi||3.41%||3.44%|
|15 yr refi||2.69%||2.72%|
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