Euro dips on French lockdown fears

LONDON, Oct 28 (Reuters): The dollar rose against the euro on prospects of a national coronavirus lockdown in France, with implied volatility gauges in the common currency and the yen hitting multi-month highs as traders positioned for next week's US election.

The dollar fell against the safe-haven Japanese currency, as disappointment that the United States has not yet found a way to push through another round of fiscal stimulus also weighed on market sentiment.

President Emmanuel Macron will give a televised address on Wednesday, amid media reports that the French government may impose a lockdown from midnight on Thursday.

With news that Pfizer has not yet been able to determine how well its late-phase COVID-19 vaccine protects against the disease adding to the cautious mood, riskier assets fell across markets.

The euro was down 0.4 per cent at $1.1753, while the yen rose 0.2 per cent to 104.16 per dollar, its highest in more than a month.

One-week implied volatility gauges in euro and yen rose to their highest in nearly seven months.

That suggests investors are preparing for sharp price moves, with the biggest focus on the United States as it struggles to contain its coronavirus epidemic as people vote early in large numbers for what promises to be a pivotal election on Nov. 3.