The dollar rose against the euro Monday as optimism about new governments in Italy and Greece faded.
Investors are still concerned about the challenges both countries face in making more economic reforms. One sign of those worries was a bond auction held in Italy Monday. Investors demanded a 6.39 percent interest rate on five-year bonds, the highest rate since 1997. That indicates investors are still unsure of the country's ability to pay its debt. Just a month ago, interest rates on the same type of bonds were 5.32 percent.
News that two new leaders, Mario Monti in Italy and Lucas Papademos in Greece, would take control helped boost the euro on Thursday and Friday. But investors are realizing that the new governments may have a hard time reducing debt at a time when growth in both countries is stagnant.
The euro fell to $1.3616 in late trading Monday from $1.3747 late Friday. The euro has fallen about 1.7 percent so far in November on worries about the European debt crisis.
In other trading Monday, the British pound fell to $1.5898 from $1.6060 late Friday. The dollar rose to 0.9076 Swiss franc from 0.9021 Swiss franc and to 1.0174 Canadian dollar from 1.0133 Canadian dollar. Meanwhile, the dollar fell to 77.12 Japanese yen from 77.17 Japanese yen.