* Euro recovers vs dollar; traders eye EU meeting
* Greece uncertainty caps gains
* Dollar rises vs yen after Empire, TICs data
(Adds comments, details. Updates prices)
By Vivianne Rodrigues
NEW YORK, Feb 16 (Reuters) - The euro had its biggest one day gain versus the dollar since the end of November on Tuesday, as traders bet the single currency had slipped too far in recent weeks over worries about Greek's public finances.
A rise in U.S. stocks helped renew risk appetite among investors, who sold the dollar and favored the European currency after its recent sharp drop.
Gains in the euro were limited, however, due to uncertainty over whether Greece's debt problems will be resolved quickly, as investors awaited developments at a meeting of European Union finance ministers on Greece on Tuesday. [ID:nLDE61F0XT]
"A brief pause in European related headlines perhaps offers hope for a corrective bounce (in the euro) in the coming days," said Nick Bennenbroek, head of currency strategy at Wells Fargo Bank in New York.
Analysts said the euro remained highly sensitive to any more negative news on Greece.
"The main focus is still on Greece and the debt problems on the periphery of the euro zone," said Jacob Oubina, senior currency strategist at FOREX.com, in Bedminster, New Jersey.
Euro zone states urged Greece on Monday to take further steps to control its budget deficit by mid-March if needed, but did not elaborate on last week's EU pledge. [ID:nLDE61E29L]
In midday trading in New York, the euro
In the United States, a gauge of manufacturing in New York state jumped in February to its highest level since October, and another report showed net overall capital inflows increased to $60.9 billion in December, lending some support the dollar. [ID:nN16239334] [ID:nN16210359]
"U.S. data has outperformed European data, so that's been helpful for the dollar," Oubina added.
The dollar rose 0.5 percent against the yen to 90.43
FURTHER LOSSES?
The euro has shed about 4 percent against the dollar since the beginning of the year on worries over the fiscal health of Greece and other euro zone countries, such as Portugal.
This increased the number of net euro short positions to a record high last week, according to the latest data from the Commodity Futures Trading Commission.
"Should the euro fail to gain any traction, it would be a signal of further losses to come for the single currency." Bennenbroek at Wells Fargo added.
Markets showed limited reaction to a ZEW survey showing German economic sentiment fell for the fifth straight month in February, although not by as much as expected. [ID:nDEG005625]
Traders said the euro was also helped higher against the U.S. dollar in tandem with the Australian dollar and other perceived riskier currencies after Australia's central bank signaled further gradual interest rate rises. [ID:nSYC002309]
But the Australian currency outshone the euro, hitting a
decade high of A$1.5241
Against the yen, the euro
(Additional reporting by Steven C. Johnson in New York and Naomi Tajitsu in London, Editing by Chizu Nomiyama)