By Naomi Tajitsu LONDON (Reuters) - The dollar gained against most currencies on Monday as falling global stocks spurred profit taking and the United States and China became embroiled in their latest trade spat. A 1.1 percent fall in European shares .FTEU3 lifted the dollar half a percent on the day against a basket of six major currencies, pulling it away from a one-year low hit last week. On Friday, U.S. President Barack Obama announced safeguard duties on tire imports from China that would put additional duties of 35 percent on Chinese-made tires from September 26. China struck back, announcing its own anti-dumping investigations of motor vehicles and chicken products from the United States. Some analysts said the row had provided an opportunity to book profits on last week's rally in currencies considered be higher-risk, including the euro, sterling and the high-yielding Australian and New Zealand currencies. "Risk has come a long way in a short time, and the market was looking for a reason to pull back and get in at better levels," said Paul Robson, currency strategist at RBS in London. He added that while the latest tension between Washington and Beijing quelled risk demand on Monday, it was unlikely to put a lasting hole in the market's appetite for risk in the longer term. Other analysts said such a row during a time of fragility in the global economy was keeping investors wary of risky positions, which was helping to boost the dollar. "A trade war will not help the global economy and we believe this news is enough to dent a market positioned for recovery," said Chris Turner, head of FX strategy at ING. By 1110 GMT, the euro was down 0.2 percent on the day at $1.4538. It hit a 2009 peak of $1.4636 on trading platform EBS on Friday. The dollar index .DXY was at 77.001, up 0.5 percent on the day. Markets shrugged off euro zone industrial production data, which fell 0.3 percent in July, slightly lower than forecasts, and employment in the euro zone down 0.5 percent in the second quarter versus the previous three months. Separately, the European Commission forecast the euro zone economy to contract by 4.0 percent this year -- the same as it forecast in May. AUSSIE, KIWI FALTER The Australian dollar fell 0.6 percent to $0.8576, retreating from Friday's one-year high of $0.8677. The New Zealand dollar slid 1.1 percent to $0.6990, hurt on an unexpected fall in New Zealand retail sales for July. But many analysts said the dollar's rebound was temporary, as the greenback would be undermined by falling Treasury yields and a view it was replacing the yen as a funding currency.

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