Dollar gains in thin trade

London: The dollar recovered in trade thinned by a US market holiday on Monday, as investors locked in profits following the currency's worst weekly performance of the year so far.

A series of bleak US economic reports last Friday, including one showing consumer sentiment hitting a 16-year low, had rekindled worries about a US recession and reinforced expectations for more hefty interest rate cuts.

"I think it's just position unwinding with the United States on holiday today [but] we are still negative on the dollar," said Carl Hammer, analyst at SEB in Stockholm. By 1449 GMT, the dollar was up 0.3 per cent against a basket of major currencies at 76.303.