* Dollar index on track to lose 0.5 pct this week
* US jobs data awaited to potentially add bids back to the dollar
* Canadian dollar near 3-week high after OPEC-induced oil rally
By Shinichi Saoshiro
TOKYO, Dec 2 (Reuters) - 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 Trump.
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)