TOKYO, June 5 Reuters The dollar firmed against major peers in Asian trading after a robust U.S. jobs report spurred traders to price in higher interest rates for longer.

The Australian dollar erased early losses after a report showed a pickup in services activity in key trading partner China. The yuan also initially got a boost, but then dropped back toward a sixmonth low.

Meanwhile, the Turkish lira dropped more than 1, continuing its slide since President Tayyip Erdogan39;s reelection, despite the appointment of highlyregarded Mehmet Simsek as finance minister.

The U.S. dollar garnered support from higher Treasury yields after data on Friday showed payrolls in the public and private sector increased by 339,000 in May, far outstripping the 190,000 forecast on average by economists polled by Reuters.

The U.S. currency edged up 0.04 to 140.01 yen , as 10year U.S. Treasury yields climbed more than 3 basis points to 3.727 in Tokyo. The dollar rallied 0.84 against the yen on Friday.

The euro slipped 0.08 to 1.06995, extending the previous session39;s 0.51 slide.

While headline U.S. jobs growth was much stronger than expected in May, wage pressures eased and the unemployment rate climbed off a 53year low, potentially giving the Federal Reserve scope to pause their rate hiking campaign at the upcoming June 1314 meeting, as some officials had voiced a preference for doing last week.

However, those bets simply shifted to July, and traders eased off on bets for rate cuts…