NEW YORK, Jan 6: The dollar hit a six-week high against the euro on Friday after the publication of US non-farm payrolls data which showed that job creation in the world's biggest economy picked up in December.

The euro slipped to $1.3003 in late New York trading from $1.3082 here late on Thursday. Earlier it had slipped below the $1.30- level for the first time since November 24.

The dollar fell to 118.61 yen from 119.01 yen late on Thursday, while the British pound was quoted at $1.9291 from $1.9428 a day earlier.

Official data from the Labour Department showed the US economy added 167,000 jobs in December, far more than the 100,000 forecast by Wall Street, and the job creation figures for October and November were also revised upwards.

The latest assessment cut short any lingering talk that the Federal Reserve might cut interest rates in the coming months, analysts said.

The payrolls data have put paid to any thought of a Fed rate cut and investors will be picking through upcoming data very carefully, said Paul Bednarczyk, currency analyst at 4CAST.

Analysts also pointed to an unchanged US unemployment rate and a rise in hourly wages as further evidence the Federal Reserve would be unlikely to cut rates.

The yen garnered support Friday from a report in the Yomiuri Shimbun, Japan's top-selling daily, that the Bank of Japan (BoJ) might hike its benchmark interest rate from 0.25 per cent as early as its January 17-18 meeting.

But a rate hike still appears unlikely in January and participants used the report as an excuse to take some profits on the dollar's recent rise against the yen, said Hachijuni Bank foreign exchange dealer Noriaki Ichikawa.

Traders are simply readjusting their positions so the yen-buying is temporary, he added.

Market expectations for another rise in Japanese interest rates have waned since BoJ governor Toshihiko Fukui -- who has repeatedly signalled he wanted to raise rates at some point -- acknowledged last month that consumer prices and private consumption had been weaker than previously thought.

In late New York trade, the dollar edged up to 1.2355 Swiss francs from 1.2327 Thursday.

—AFP