FOREX-US dollar climbs to 1-mth peak on global bank worries

* Euro falls; dollar index hits one-month high

* Stocks down on bank worries, hitting risk appetite

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

* Fed rate announcement awaited

(Adds quotes, updates prices, changes byline)

By Gertrude Chavez-Dreyfuss

NEW YORK, Nov 3 (Reuters) - The U.S. dollar climbed to a one-month high against a basket of currencies on Tuesday as concerns about the global banking sector and equity losses re-ignited safe-haven demand for the greenback.

European shares .FTEU3 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 risky trades.

That hurt currencies such as the euro that are viewed as proxies for risk appetite in the current environment.

"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 early afternoon trading, the ICE Futures U.S. dollar index .DXY, a measure of the greenback against a basket of six currencies, rose 0.2 percent to 76.456, after earlier climbing as high as 76.817, its highest since early October.

The euro fell 0.5 percent to $1.4692 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 2009-2010.

The euro also declined 0.5 percent EURJPY=R versus the yen to 132.60, 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. That may offer 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."