NEW YORK: The euro got a slight bounce back against the dollar Monday after falling sharply last week, but not before hitting a new two-year low of $1.2267 in trade during the day.
The euro was traded at $1.2312 at 2100 GMT, up from $1.2287 late Friday.
The euro also gained ground on the yen, to 97.95 yen from 97.83 yen, while the dollar fell against the Japanese currency, to 79.56 yen from 79.62.
Traders said the euro remained weak after European Central Bank chief Mario Draghi said that the formation of the European Stability Mechanism, crucial to calming markets in the eurozone, was moving slowly.
"What really worried the markets was his comment on the ESM not being ready to recapitalize banks by the end of the year, but 'we are going as fast as we can,'" said ETX Capital strategist Ishaq Siddiqi.
Draghi also remained dovish in his tone on monetary policy.
"It seems as though the central bank head is keeping the door open to expand monetary policy further amid the growing threat for a prolonged recession in Europe," said David Song of Daily FX.
Meanwhile, a round of speeches by Federal Reserve officials showed they remained split on the need for more stimulus, though seemingly leaning more toward that side than away. The Fed meets next on policy at the end of July.
The British pound rebounded on the dollar slightly, moving to $1.5526 from $1.5485.
The dollar slipped to 0.9752 Swiss francs from 0.9771 francs.
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