* Euro up 0.2 percent at $1.5880 EUR=

* Investors watching U.S. earnings, oil prices

* Sentiment on U.S. financials remains cautious

(Changes dateline, updates prices, adds quotes)

By Naomi Tajitsu

LONDON, July 21 (Reuters) - The dollar slipped on Monday, staying near a record low against the euro on concerns about the health of the U.S. financial sector, while investors focussed on a proposed rescue plan for Fannie Mae and Freddie Mac.

Losses were limited as confidence in the U.S. financial sector, hard-hit by the nearly one-year old credit crunch, was boosted somewhat late last week after results from Citi (C.N: Quote, Profile, Research), JPMorgan Chase (JPM.N: Quote, Profile, Research) and Wells Fargo (WFC.N: Quote, Profile, Research) beat low expectations.

But a flurry of earnings due this week -- including Bank of America later in the day and Wachovia WB.N on Tuesday -- kept investors on edge.