By Daniel Kruger and Jamie McGee Nov. 10 (Bloomberg) -- The yen rose against the dollar on speculation a drop in stocks will lead investors to sell higher- yielding assets and pay back low-cost loans in Japan, unwinding the carry trade. Japan's currency erased its decline versus the dollar and pared its slide against the euro as U.S. stocks reversed their rally. The Standard & Poor's 500 Index decreased 0.3 percent after advancing as much as 2.3 percent. The yen increased 0.2 percent to 98.08 versus the dollar at 12:16 p.m. in New York, from 98.24 on Nov. 7. The euro gained 0.4 percent to 125.44 yen from 124.90 after earlier rising as much as 2.8 percent. The euro rose 0.6 percent to $1.2789 from $1.2718. To contact the reporters on this story: Daniel Kruger in New York at dkruger1@bloomberg.net; Jamie McGee in New York at jmcgee8@bloomberg.net

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