FOREX-US dollar rises to 1-mo highs on banking worries

* Euro falls; dollar index hits one-month high

* Global stocks mostly down, denting risk appetite

* UK bank shake-up briefly hits sterling; Aussie down

* Fed rate announcement awaited (Updates prices, adds price action in FX options)

By Gertrude Chavez-Dreyfuss

NEW YORK, Nov 3 (Reuters) - The U.S. dollar climbed to a one-month high against the euro on Tuesday as concerns about the global banking sector reignited safe-haven demand for the greenback.

European shares .FTEU3 fell and Wall Street stocks were flat after trading lower for most of the session following disappointing results from UBS UBSN.VS and a shake-up of UK banks Lloyds (LLOY.L) and Royal Bank of Scotland (RBS.L). That prompted investors to cut back on on higher-yielding currencies and buy back the dollar used to finance these trades.

"Sentiment on the financial sector in Europe was weak and that pressured the euro and the pound earlier and contributed to the overall strength in the dollar," said Vassili Serebriakov, senior currency strategist, at Wells Fargo in New York.

In late afternoon trading, the euro fell 0.4 percent to $1.4706 after hitting a four-week low of $1.4627 EUR=, according to Reuters data.

News about the European Commission's estimates of bank losses renewed 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 2009-10.

The euro also declined 0.4 percent EURJPY=R against the yen to 132.87, while the dollar was little changed at 90.32 yen JPY=.

The ICE Futures U.S. dollar index .DXY, a measure of the greenback against a basket of six currencies, was up 0.1 percent at 76.360, after earlier climbing as high as 76.817, its highest since early October.

Tuesday's price action boosted implied volatility, a measure of a currency's movement in either direction and a barometer of risk sentiment. The higher the vol, the greater the fear in the market.

Implied vols rose across the board and in all tenors. One-month euro/dollar vols EUR1MO=, for instance surged to a high of 12.50 and last traded at 12.1.

The one-year EUR1YO= contract on euro/dollar implied vols traded as high as 14.3 before profit-taking set in. One-year vols last changed hands at 14.19.

FURTHER DOLLAR SUPPORT