Nov 22 (Reuters) - The dollar index rose briefly to a two-year high after S&P Global’s preliminary measure of U.S. business activity in November rose to its highest level since April 2022.

The U.S. Composite PMI Output Index climbed to 55.3 from a 54.1 reading in October, with the services sector beating expectations.

The euro pared a loss after an earlier report of slumping euro zone business activity in November sent the common currency to a two-year low. Labor representatives also voted for limited strikes at Volkswagen's German operations from early December.

The European Central Bank is not behind the curve in cutting interest rates but must watch for the risk of undershooting its inflation target and depressing growth unnecessarily, French central bank chief Francois Villeroy de Galhau said.

President Vladimir Putin said on Friday that Russia would keep testing the hypersonic Oreshnik missile it fired at Ukraine.

The pound fell to six-month low after the UK S&P Global Flash Composite PMI dipped below 50 in November, signaling business contraction.

The Swiss franc weakened after Swiss National Bank Chairman Martin Schlegel said negative interest rates will be reintroduced, if necessary.

Treasury yields were mixed as the curve flattened. The 2s-10s curve was up about 2 basis points to +16.5bp.

The S&P 500 rose 0.22% fueled by gains in industrials and consumer discretionary.

Oil jumped 1.77% as the Ukraine war intensifies.

Gold rose 1.53% amid haven demand.

Copper slid 0.96% amid pressure from the stronger dollar and drop in European business activity index.

Heading toward the close: EUR/USD -0.55%, USD/JPY +0.13%, GBP/USD -0.48%, AUD/USD -0.22%, DXY +0.50%, EUR/JPY -0.40%, GBP/JPY -0.41%, AUD/JPY -0.14%.

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(Editing by Burton Frierson Reporting by Robert Fullem)

((robert.fullem@thomsonreuters.com;))