FOREX-US dollar hits 1-month highs on bank woes,stock fall

* Euro falls; dollar index hits one-month high

* Stocks down on bank worries, hitting risk appetite

* UK bank shake-up stings sterling; Aussie down after RBA

* Federal Reserve rate announcement, payroll data, awaited (Adds quotes, updates prices)

By Wanfeng Zhou

NEW YORK, Nov 3 (Reuters) - The U.S. dollar rose to a one-month high against a basket of currencies on Tuesday as concerns about the global banking sector and weaker equity markets boosted the greenback's safe-haven appeal.

European shares fell and Wall Street stocks traded lower after disappointing results from UBS UBSN.VS and a shake-up of UK banks Lloyds (LLOY.L) and Royal Bank of Scotland (RBS.L) prompted investors to cut back on risk.

"We saw investors focus once again on the health of the banking sector," said Omer Esiner, senior market analyst at Travelex Global Business Payments in Washington. "Stocks were generally lower and that has rekindled demand for safe-haven, low-yielding assets like the dollar and the Japanese yen."

In midday trading, the ICE Futures U.S. dollar index .DXY, a measure of the greenback against a basket of six major currencies, rose 0.4 percent to 76.580, after earlier climbing as high as 76.817, its highest since early October.

The euro fell 0.8 percent to $1.4656 after hitting a four-week low of $1.4627 EUR=, according to Reuters data.

Some analysts attributed losses in bank shares and the euro partly to European Commission estimates of bank losses renewing anxiety over the sector's health.

The EU Commission quoted results of stress tests in the banking sector, published in early October, which said losses could amount to 400 billion euros ($585.2 billion) in 2009-2010.

The euro also dropped 0.8 percent EURJPY=R to 132.35 yen while the dollar was little changed at 90.29 yen JPY=.

Some traders said profit-taking on risk assets, already seen in equities, could materialize ahead of funds' book-closings as the year-end approaches and that this may offer an additional boost to the dollar.

"People are starting to slowly remove risk from the table," said Brian Kim, currency strategist with UBS in Stamford, Connecticut. "We could see a little support for the dollar heading into year end."

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