FOREX-US dollar sinks vs yen, rises vs euro as stocks swoon

* Yen rallies as stocks fall, recession worries grow

* US jobless claims spike, dollar gains vs high-yielders

* Surprise Swiss interest rate cut hits Swiss franc

* Still no deal for automakers

* For up-to-the-minute market news, click on FXNEWS (Updates prices, adds comments, changes byline)

By Gertrude Chavez-Dreyfuss

NEW YORK, Nov 20 (Reuters) - The U.S. dollar slumped versus the yen on Thursday, squeezed by Wall Street's plunge as fears of a worldwide downturn that was much deeper than initially thought made investors seek shelter in the safest assets.

The greenback and yen, meanwhile, rose against the euro and currencies of nations with high interest rates, like the Australian and New Zealand dollars, as investors sold risky assets such as stocks and commodities financed by loans denominated in the U.S. dollar and the Japanese unit.

Currency investors continued to track movements in the U.S. stock market, with the S&P 500 index sliding to an 11-1/2 year low as optimism about a deal for the ailing auto sector faded. U.S. Senate Democratic leader Harry Reid said there has been no viable auto industry plan "that can be passed by the House and Senate, and signed by the President."  Continued...