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FOREX-Dollar pares gains as global shares come off lows

* Dollar index pares gains throughout session

* Greenback brushes off worsening U.S. trade gap

* Yen, Swiss franc pare losses as Wall Street comes off lows

(Updates prices, market activity, adds commentary; changes byline) NEW YORK, Feb 6 (Reuters) - The U.S. dollar index reversed course on Tuesday, erasing most of the gains it made earlier in the session as Wall Street came off its lows in choppy trading a day after the Dow and S&P 500 stock indexes posted their biggest declines since August 2011. The dollar index, which tracks the greenback against a slate of currencies, rose earlier to its highest level in more than a week after two straight sessions of gains as traders piled back into the dollar following a global stock market rout. The index last rose 0.04 percent at 3:01 p.m. EST (2001 GMT). On Monday U.S. stock indexes posted sharp declines, leading traders to buy dollars even though the stock sell-off also led investors to moderate their expectations of Federal Reserve rate hikes. MSCI's gauge of stocks across the globe shed 0.78 percent on Tuesday. On Wall Street, the S&P 500 was last up 1.07 percent at 2,677.25. "The movements in currencies are mirroring the movements in stocks," said Kathy Lien, managing director for BK Asset Management in New York. "Generally speaking, the recovery in stocks, the pullback in VIX (volatility) has led to a decline in the U.S. dollar as investors have stopped piling into risk-aversion trades and stopped unwinding some of their riskier bets." Traditional safe-haven currencies like the Japanese yen and Swiss franc pared some of their losses against the greenback as stocks moved off their lows. The dollar rose 0.24 percent to 109.35 yen and gained 0.50 percent to 0.9361 Swiss franc. Currencies at risk during a global equity slump are higher-yielding commodity-linked currencies like the Australian dollar and emerging market currencies, which often slide when risk appetite drops, analysts said. The Australian dollar last rose 0.11 percent to $0.79, while the Mexican peso fell 0.90 percent to 18.61 peso. Data that showed the U.S. trade deficit widened in December to its biggest level in nine years took a backseat as investors focused instead on stock volatility.

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Currency bid prices at 10:24AM (1524 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change

Session

Euro/Dollar EUR= $1.2321 $1.2367 -0.37% +0.00% +1.2433 +1.2316 Dollar/Yen JPY= 109.2500 109.0900 +0.15% +0.00% +109.6400 +108.4700 Euro/Yen EURJPY= 134.61 134.92 -0.23% +0.00% +135.7800 +133.9900 Dollar/Swiss CHF= 0.9387 0.9314 +0.78% +0.00% +0.9397 +0.9307 Sterling/Dollar GBP= 1.3864 1.3957 -0.67% +0.00% +1.3999 +1.3837 Dollar/Canadian CAD= 1.2519 1.2537 -0.14% +0.00% +1.2565 +1.2503 Australian/Doll AUD= 0.7864 0.7877 -0.17% +0.00% +0.7890 +0.7836

ar

Euro/Swiss EURCHF= 1.1568 1.1518 +0.43% +0.00% +1.1602 +1.1514 Euro/Sterling EURGBP= 0.8884 0.8858 +0.29% +0.00% +0.8910 +0.8856 NZ Dollar/Dolar NZD= 0.7290 0.7263 +0.37% +0.00% +0.7318 +0.7258 Dollar/Norway NOK= 7.8485 7.8346 +0.18% +0.00% +7.8888 +7.7805 Euro/Norway EURNOK= 9.6707 9.6884 -0.18% +0.00% +9.7479 +9.6594 Dollar/Sweden SEK= 7.9917 7.9793 -0.23% +0.00% +8.0090 +7.9291 Euro/Sweden EURSEK= 9.8473 9.8704 -0.23% +0.00% +9.8899 +9.8436

(Reporting by Stephanie Kelly and Richard Leong; Editing by Cynthia Osterman)