By Tamawa Desai LONDON, Nov 8 (Reuters) - The dollar rose on Monday as an unwinding of dollar short positions that began with solid U.S. jobs data gathered pace, while renewed concern over euro zone peripheral debt hurt the euro. With the U.S. Federal Reserve's decision to launch more quantitative easing out of the way, euro zone debt problems seemed to have reappeared on traders' radars. On Friday, the 10-year Irish bond yield spread over benchmark German debt hit record highs, while the 10-year Spanish/German spread ES10YT=TWEB DE10YT=TWEB rose to its highest level since mid-July. "Now that QE by the Fed has become a fact, the market is paying attention to other factors that were overshadowed ahead of the Fed meeting," said Roberto Mialich, currency strategist at Unicredit in Milan. "Also, stronger-than-expected U.S. payrolls sparked more position adjustments and profit-taking on the euro. I see a consolidation of the euro between $1.38 and $1.40 during the week," he said, adding traders may be cautious about chasing the dollar too high ahead of the Group of 20 summit meeting in Seoul this weekend, which may address imbalances. By 0828 GMT, the euro EUR= dropped 0.5 percent to $1.3953, after triggering stops as it fell through $1.4010 and $1.3990, its low of last Wednesday when the Fed said it would increase its asset purchases. There was support at the day's low of $1.3920, the 61.8 percent retracement of its Oct. 20 to Nov. 4 rally to a 10-month high of $1.4283, and more at $1.3835, the 76.4 percent retracement. Some said the euro could fall towards $1.3750, having hit a late October low of $1.3756. The dollar index =USD, a measure of its performance against a basket of currencies, rose 0.4 percent to 76.889, as the greenback gained after U.S. jobs data blew past expectations on Friday. [ID:nN04265378] <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ PDF on Fed decision: r.reuters.com/cyh73q More stories on Fed policy: [FED/AHEAD] Take-a-look on criticism before G20 [nTOE69K01G] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> Euro/yen selling out of Tokyo was also said to have helped send the single currency lower, which in turn weighed on other currencies against the yen. The dollar was flat against the yen at 81.20 yen JPY= and a full yen above its 15-year low of 80.21 yen plumbed last week.

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