FOREX-US dollar rallies in thin trading; uptrend intact

* U.S. dollar index recovers

* Global growth concerns support dollar

* Euro, yen fall against dollar

(Updates prices, adds comment)

By Gertrude Chavez-Dreyfuss

NEW YORK, Aug 20 (Reuters) - The U.S. dollar rebounded on Wednesday, still bolstered by a growing view that the United States could skirt a possible recession even as other major countries grappled with their own decelerating economies.

The dollar index .DXY firmed on the ICE Futures Exchange after retreating much of the New York session on Tuesday as investors took profits following a 2008 high hit earlier that day on global markets.

Traders resumed buying the currency on Wednesday on what was seen as consolidation in the absence of fresh market-moving news, economic data or policymakers' speeches.

"We are seeing a modest consolidation of recent dollar gains, but the consolidation appears shallow because the dollar is gaining despite disappointing data in the past few days and concerns about the financial sector," said Michael Woolfolk, senior currency strategist, at Bank of New York Mellon.

"Overall, I believe the dollar rally is very much alive and well. In terms of growth and interest rate differentials, the dollar is poised for further gains," he added.

In midday New York trading, the dollar index, a measure of its value against a basket of six major currencies, was up 0.6 percent on the day at 77.169.

On Tuesday, it rose to a high for the year of 77.413.

The euro was down 0.7 percent at $1.4684 <EUR=>, well within striking distance of its six-month low of around $1.4631 hit on Tuesday.

The dollar gained 0.3 percent on the yen to 110.00 yen <JPY=>, not far from its seven-month high of about 110.67 yen hit last week.

Oil, meanwhile, resumed its downtrend, further underpinning the dollar. U.S. crude future fell more than 1 percent to $113.11 per barrel CLc1 after U.S. crude oil inventories surged last week.

HEADWINDS FOR U.S. DOLLAR  Continued...