In the wake of the rising worries on the financial meltdown in Hungary and the worsening conditions of debt in the Euro zone, the Euro reportedly fell on Monday, hitting its lowest in the last four years.

The Euro Zone has been facing the brunt of loss in the jobs and growing need of implementing the austerity measures in most of the countries in its range. It fears that Hungary can be the next country to run into losses due to debts, like Greece.

Australian dollar dropped as equities and commodity prices surged while traders began to carry trades.

On Friday, the euro extended a slide as the market players said that it is expected to go below $1.2135, further.

The euro has touched an 8-1/2-year low against the Yen as the investors switched to the low-yielding Japanese currency and the dollar and the Swiss franc.

"The worries about Hungary came at a time when the market is really sensitive to any negative economic news and it has affected risk sentiment all over the world” said Elisabeth Andreew, Currency Strategist at Nordea.

The data released on Friday showed the speculators reducing shorts on the euro still-high 93,325 contracts from 106,736, this week.