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* Dollar jumps after U.S. payrolls rise by 175,000 in May
* Data not seen strong enough to prompt early Fed tapering
* Stock futures point to firmer Wall Street open
By Richard Hubbard
LONDON, June 7 (Reuters) - The dollar jumped and shares edged higher on Friday after U.S. jobs data for May suggested the economic recovery is steady but not strong enough to convince the Federal Reserve to start cutting back its monetary stimulus.
Employment outside the farming sector in the world's leading economy rose by 175,000 last month, close to forecasts for 170,000 new jobs. The unemployment rate ticked up to 7.6 percent from 7.5 percent, which was its lowest since December 2008.
"It's not a gang-busters, barn-burning, the economy-is-soaring kind of number, but it shows people re-entering the workforce," said Steve Blitz, chief economist at ITG Investment Research in New York.
The dollar initially jumped above 96 yen after the data from about 95.68 yen before, settling at 95.85 yen. Against the euro, the dollar gained 0.3 percent to $1.32.
U.S. stock index futures pointed to a firmer start when Wall Street opens while European shares edged away from six-week lows to be up 0.3 percent. That left MSCI's world equity index slightly firmer but still on course for its third week of losses.
Long-dated Treasury bonds fell a point, with the 30-year down 1-5/32 in price at 91-28/32. It yielded 3.305 percent, up 6.5 basis points from late on Thursday.