* Dollar and yen rise after July U.S. consumer data
* Dollar rebounds from 2009 trough vs basket of currencies
* Consumer confidence fell more than expected to 46.6 (Adds comments, updates prices, adds reaction to U.S. data)
By Wanfeng Zhou
NEW YORK, July 28 (Reuters) - The dollar rebounded from its lowest level this year versus a basket of currencies on Tuesday as weaker U.S. consumer confidence data rekindled worries about the economy, enhancing the greenback's safe-haven allure.
The yen also rallied across-the-board as U.S. stocks fell and investors dumped riskier assets.
U.S. consumer confidence fell more than expected in July, Conference Board data showed, recording its second consecutive decline as sentiment remained hampered by a difficult job market.
"Consumers are feeling no love in this recovery," said Boris Schlossberg, director of currency research at GFT Forex in New York. "All this suggests is that the critical assumption by the recovery bulls that consumption will come back as the recovery takes hold is faulty."
The ICE Futures U.S. dollar index, which measures the performance of the greenback versus a basket of six currencies, rose 0.3 percent to 78.893.
It had earlier fallen to a low of 78.315, the lowest since December.
The euro fell 0.5 percent to $1.4173, having earlier climbed as high as $1.4303, its highest since early June, according to Reuters data.
"We've seen some rolling over in the euro/dollar with some people returning to dollars because consumer confidence was a bit disappointing," said Brian Kim, currency strategist at UBS in Stamford, Connecticut.
"Fundamentally, there's cause for concern even though some of the data has been better."
The dollar fell 0.7 percent to 94.56 yen, while the euro dropped 1.2 percent to 133.92 yen.
Traders awaited the outcome of a sale of $42 billion of two-year U.S. government paper later in the day. A record $115 billion in new debt is being auctioned this week, including $96 billion in new coupon securities. (Additional reporting by Gertrude Chavez-Dreyfuss and Steven C. Johnson; Editing by Andrea Ricci)