FOREX-Dollar, yen post gains as U.S. unemployment rises

* Risk aversion rises after weak U.S. jobs data

* U.S. Oct payrolls fall 190,000, jobless rate at 10.2 pct

* Traders reduce bets of Fed raising interest rates

* Investors also keep an eye on G20 meeting (Adds details, updates prices, quotes, changes byline)

By Gertrude Chavez-Dreyfuss

NEW YORK, Nov 6 (Reuters) - The dollar and yen rose on Friday after a report showed the U.S. unemployment rate spiked and the economy lost more jobs than expected, stoking concerns about the U.S. economy and restoring safe-haven demand for both currencies.

The news dashed hopes the recession was ending after recent gross domestic product and jobless claims readings had seemed to indicate a recovery. With the labor market still weak, U.S. consumer sentiment and spending will likely remain under pressure, analysts said.

On Friday, the government reported U.S. employers cut a deeper-than-expected 190,000 jobs in October, driving the unemployment rate to a 26-1/2-year high at 10.2 percent. For details, see [ID:nN04495174].

The jobless figures "grabbed attention upon the announcement and created an avalanche of currency selling in favor of the dollar by investors," said Andrew Wilkinson, senior market analyst at Interactive Brokers in Greenwich, Connecticut.