* Dollar turns higher as US consumer confidence falls
* Euro falls to session lows, trades below $1.48 (Recasts, updates prices, adds comment, U.S. data)
By Gertrude Chavez-Dreyfuss
NEW YORK, Oct 27 (Reuters) - The dollar rose to two-week highs against the euro on Tuesday in choppy trading, as investors sought shelter in the greenback after data showed U.S. consumer confidence worsened in October, suggesting a global recovery could stall.
A U.S. consumer confidence index fell to 47.7 this month, its weakest since July and well below forecasts for a reading of 53.1.
A weak confidence report bodes ill for the U.S. economy because it indicates restrained consumer spending. That is good news for the safe-haven dollar, but could pressure risky assets such as stocks and commodities and higher-yielding currencies such as the Australian dollar.
"The consumer data suggests a global recovery isn't as entrenched as we thought it was," said Greg Salvaggio, senior vice president of capital markets at Tempus Consulting in Washington.
In mid-morning trading, the euro fell to $1.4787, its lowest since Oct. 13. It was last at $1.4815, down 0.3 percent and way below the $1.5064 hit on Monday, its highest since August 2008.
"We're of the mind-set that the euro is a bit overextended. Every single player in the market is long euros, and we're seeing a correction now," Salvaggio said.
Analysts said the market is aware that short positions in the dollar have piled up in past weeks, signaling the possibility of a rebound in the U.S. currency.
The ICE Futures dollar index, a measure of its performance against six other major currencies, rose to 76.323, a two-week high, well above a 14-month low of 74.94 hit last week. It was last at 76.196, up 0.2 percent.
(Additional reporting by Steven C. Johnson; Editing by Andrea Ricci)