* Dollar index on track to lose 0.5 pct this week
* US jobs data awaited to potentially add bids back to the
* Canadian dollar near 3-week high after OPEC-induced oil
By Shinichi Saoshiro
TOKYO, Dec 2 The dollar sagged early on Friday
against its peers as investors were cautious ahead of a looming
U.S. jobs report that could set the tone in coming days.
The greenback was poised to end lower against a basket of
currencies this week during which it gave up some of its recent
robust gains. The dollar index was little changed at 100.93
after falling 0.6 percent overnight.
It was on track to lose 0.5 percent this week, with the
index pulling back from a 13-1/2-year high of 102.05 scaled on
Nov. 24 when it had rallied along with a surge in U.S. yields
triggered by expectations of a higher fiscal impulse and a
faster pace of monetary tightening under president-elect Donald
The U.S. currency was on the back foot as other currencies
were influenced by their own catalysts and as financial markets
took a breather from the Trump-induced rally.
The euro rose 0.7 percent overnight after Reuters reported
the European Central Bank will extend its bond purchases beyond
next March and consider sending a formal signal next week that
the asset purchase program will eventually end. It last stood
little changed at $1.0659 and enroute to rise 0.8 percent
on the week.
Focus for the common currency is now on the Italian
referendum during the weekend and whether the government would
win or lose the vote on constitutional reform.
Sterling gained on a perceived crack in Britain's "hard
Brexit" line following comments from Brexit minister David
Davis. The pound was up a fraction at $1.2596 after
rising 0.7 percent the previous day when it touched a 2-month
high of $1.2696.
The dollar fared slightly better against the yen. The U.S.
currency was flat at 113.990 yen after rising to a near
10-month high of 114.830 the previous day, and on its way for a
0.6 percent weekly gain.
"The dollar has more elbow room to perform better against
the yen, as it had suffered bigger losses earlier in the year
relative to other currencies," said Daisuke Karakama, market
economist at Mizuho Bank.
"The dollar could test the 115 yen threshold depending on
how the U.S. jobs report turns out."
Economists polled by Reuters expect U.S. employers added
175,000 jobs in November, compared to 161,000 in October.
Elsewhere, the Canadian dollar was buoyant after receiving a
big boost on Wednesday when the Organization of the Petroleum
Exporting Countries agreed to the first output cut since 2008
and sent crude oil prices soaring.
The loonie was steady at C$1.3305 per dollar after
touching a 3-week high of C$1.3300 overnight.
(Editing by Shri Navaratnam)