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* Dollar falls on continued worries about U.S. financials

* Sentiment toward dollar remains cautious

* Investors watching U.S. earnings, oil prices

By Wanfeng Zhou

NEW YORK, July 21 (Reuters) - The dollar slipped on Monday, losing some of its recent momentum, after better-than-expected earnings from Bank of America failed to convince investors that the worst for the U.S. financial sector is over.

The greenback had earlier gained against the yen and pared losses against the euro after Bank of America's (BAC.N: Quote, Profile, Research) second-quarter earnings beat a Reuters Estimates forecast, boosting U.S. stocks.

But investors remained wary ahead of a flurry of bank earnings due this week, including Wachovia WB.N on Tuesday. The market also focused on a rescue plan for U.S. mortgage giants Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research).

"There was a lack of follow-through buying in the dollar after the Bank of America results," said Steven Butler, director of foreign exchange trading at Scotia Capital in Toronto.