SINGAPORE (AFP) - The dollar continued to gain against the euro and the yen in Asian trade Thursday but the greenback's rebound is seen likely to be short-lived owing to lingering uncertainties over the US economy, dealers said.

In afternoon trading, the euro traded at 1.5596 dollars, down from 1.5618 dollars in late US trade Wednesday while the greenback changed hands at 99.16 yen, up from 99.01 yen overnight.

Japan's financial markets are closed Thursday and will reopen Friday.

The euro surged to a lifetime high of 1.5905 dollars on Monday while the dollar fell to a 12-year low of 95.75 yen, also on the same day, a bottom not seen since September 1995.

Since then, the dollar has recovered against the euro and yen after the US Federal Reserve slashed its base federal funds rate by three-quarters of a point to 2.25 percent in a bid to ease a growing credit crisis that is threatening to freeze up financial markets.

A sustained dollar rebound is however unlikely because of continued worries about the fallout from the US housing market meltdown, despite the Fed rate cut.

"The Fed still needs to cut rates. I'm not convinced that the bottom for the dollar has occurred," said Richard Grace, chief currency strategist with the Commonwealth Bank of Australia in Sydney.

World financial markets remain jittery over the global credit squeeze which has already sunk US investment bank Bear Stearns and British retail bank Northern Rock.

Some analysts predicted the Bank of England would lower interest rates by 50 basis points at its monetary policy committee meeting next month.

"Given the recent turmoil in financial markets it now appears that the BoE will be much more likely to ease at the next MPC meeting in April," said Boris Schlossberg, senior currency strategist at Forex Capital Markets.

Against other Asian units, the dollar rose to 1.3866 Singapore dollars from 1.3806 on Wednesday, to 1012.5 South Korean won from 1,010.5, to 30.742 Taiwan dollars from 30.69 and to 31.285 Thai baht from 31.15.

It fell to 9,185 Indonesian rupiah from 9,220 and 41.475 Philippine pesos from 41.67.