Dollar up on rate cut doubts and safety play, pound slumps

NEW YORK, Nov 4 (Reuters) - The dollar rose to a four-month high against the euro on Tuesday as divisions in the Federal Reserve raised doubt about the prospect of another rate cut this year, while a risk-off move sent investors seeking the U.S. currency for safety.

Meanwhile, sterling fell after the UK finance minister pointed to "hard choices" in her upcoming budget.

Overall market sentiment was noticeably darker, with stocks falling and government bonds drawing demand, while safe-haven currencies like the yen and the Swiss franc held firm.

"I think it's just an old-fashioned haven bid," said Michael Brown, senior research strategist at Pepperstone, noting strength in both the dollar and the Japanese yen.

The euro fell for the fifth straight session, down 0.3% to $1.1483, its weakest since August 1. Against the yen, the dollar was 0.4% lower at 153.60 yen, though the Japanese currency remained near a recent 8-1/2-month low.

"Despite all the column inches that 'death of the dollar' takes up, it does remain the best haven out there in the minds of market participants," Brown said.

With investor risk appetite taking a hit, the Australian dollar fell 0.8% at $0.649, after the Reserve Bank of Australia left its cash rate steady as expected at 3.60% and said it was cautious about further easing.

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