* Dollar at highest since March vs currency basket, euro
down
* China's yuan strengthened by IMF decision
* U.S. stocks fall ahead of jobs data, Fed policy move
* ECB stimulus expectations hurt euro, lift European stocks
* Oil falls, pressured by strong dollar, rising output
(New throughout, updates prices and market activity to U.S.
stock market close, adds commentary)
By Sinead Carew
NEW YORK, Nov 30 (Reuters) - The dollar pared gains after
hitting an 8-1/2-month high against major currencies on Monday,
while the prospect of further European Central Bank stimulus
dragged the euro, and oil futures fell on worries about a
growing supply glut.
Global stock markets were mixed, with Wall Street ending the
session lower ahead of a crucial payroll report Friday, while
European shares finished higher. The three major U.S. indexes
ended November higher for a second straight month.
"There's apprehension on the part of investors to make any
big commitments ahead of the data and potential policy moves
coming up," said Bucky Hellwig, senior vice president at BB&T (N:BBT)
Wealth Management in Birmingham, Alabama.
The jobs report is arguably the most important U.S. economic
indicator due out before the Federal Reserve decides on Dec. 16
whether or not to raise interest rates for the first time in
nearly a decade. It is widely expected to raise rates.
The Dow Jones industrial average .DJI fell 78.57 points,
or 0.44 percent, to 17,719.92, the S&P 500 .SPX lost 9.7
points, or 0.46 percent, to 2,080.41 and the Nasdaq Composite
.IXIC dropped 18.86 points, or 0.37 percent, to 5,108.67.
The week is expected to highlight the divergent economic
policies in the United States and the euro zone, which may set
the tone for markets early next year.
European shares were lifted by the prospect of the ECB
unveiling an extension of its bond-buying program at a Thursday
meeting. The pan-European FTSEurofirst 300 index .FTEU3 rose
0.4 percent for a 2.3 percent monthly gain.
The dollar index .DXY , which measures the greenback
against a basket of major currencies, was up 0.17 percent
despite disappointing data on U.S. business sentiment and
pending home sales. The index hit its highest point since
mid-March and had its biggest monthly rise since January.
The euro EUR= fell 0.25 percent against the dollar to its
lowest point since April.
The IMF announced on Monday it had decided to include
China's yuan, or renminbi, in its benchmark currency basket, a
move that should bolster the yuan's political clout and standing
as a global currency, analysts said.
The offshore yuan CNH=EBS rose slightly after the news and
gained 0.3 percent against the dollar to rise to 6.4245 yuan per
dollar.
The MSCI index of world stocks .MIWD00000PUS fell 0.5
percent, and ended November down nearly 1 percent.
Oil gave back gains to end lower after a survey estimated
higher OPEC output in November, while a strong dollar weighed on
demand for commodities priced in the currency.
U.S. crude CLc1 futures settled down 6 cents, at $41.65.
Brent crude LCOc1 , the global benchmark fell further to $44.55
after settling down 25 cents, at $44.61 per barrel.
Gold XAU= rose 0.5 percent to $1,064.06 an ounce but was
on track for its biggest monthly decline since June 2013.
U.S. Treasuries prices were little changed ahead of a busy
calendar of speeches from several Federal Reserve officials and
key economic data expected during the week.
Benchmark 10-year Treasuries US10YT=RR rose 3/32 in price
to yield 2.214 percent, down from 2.222 on late Friday.
The 30-year bond US30YT=RR was up 13/32 in price to yield
2.980 percent.