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* C$ ends at C$1.0169 vs US$, or 98.34 U.S. cents
* Bonds higher across the curve as stocks fall (Updates to close)
By Jennifer Kwan
TORONTO, Nov 14 (Reuters) - The Canadian dollar slid lower against the greenback on Monday as skeptical investors worried about the ability of new governments in Italy and Greece to resolve the debt crisis battering Europe.
Global stocks and the euro sank as financial markets were unnerved by an Italian bond auction on Monday that saw the country pay a record euro-era high to sell five-year bonds. [ID:nL5E7ME1YV]
That added to concerns over the arrival of new government leaders in both Italy and Greece, with investors uncertain about what actions would follow in the two highly indebted nations. [MKTS/GLOB]
"It's again the same story as it's been for the past two weeks. What's going on in Europe has been driving everything," said Charles St-Arnaud, Canadian economist and currency strategist at Nomura Securities International in New York.
"The market is not necessarily taking the resignation of (Prime Minister Silvio) Berlusconi as absolutely a positive for the euro zone. It could be a positive that there'll be a bit less obstruction from the politics side, but there's still a lot of uncertainty," he added.
Former European Commissioner Mario Monti was asked to take over as Italian prime minister, a move that observers hope will help restore market confidence. [ID:nL5E7ME1YV] His appointment comes as Lucas Papademos was named to head the Greek government.
The Canadian dollar CAD=D3 ended at C$1.0169 versus the greenback, or 98.34 cents U.S., down from a Friday afternoon level of C$1.0112 to the U.S. dollar, or 98.89 U.S. cents, according to Thomson Reuters data.
Earlier on Monday, the Canadian dollar reached a high of C$1.0080 to the U.S. dollar, or 99.21 U.S. cents.
Camilla Sutton, chief currency strategist at Scotia Capital, said she expected the currency to remain stuck in a range of C$1.0080 to C$1.0270 to the U.S. dollar in the near term.
BONDS PRICES HIGHER
Canadian government bond prices were higher on Monday as the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed lower in tandem with global markets. [MKTS/GLOB]
"There's the traditional switch from equity to bonds that is happening today," said St-Arnaud.
The bond price movements also mirrored U.S. Treasuries, which rose on Monday as nervousness over the effects of Italy's still stressed debt valuations and weakening Spanish and French debt valuations boosted demand for safe haven U.S. bonds. [US/]
The two-year bond CA2YT=RR rose 5 Canadian cents to yield 0.906 percent, while the 10-year bond CA10YT=RR was up 28 Canadian cents to yield 2.109 percent. (Editing by Rob Wilson)