SINGAPORE, July 7 Reuters The dollar held tight ranges on Friday as investors awaited a key U.S. jobs report and weighed the prospect of higherforlonger Federal Reserve interest rates against the economic growth outlook.

The closely watched nonfarm payrolls report is due later on Friday, where expectations are for the U.S. economy to have added 225,000 jobs in June.

The release follows data on Thursday that showed private payrolls surged last month while the number of Americans filing new claims for unemployment benefits increased moderately last week, suggesting the labour market remained on solid ground.

That kept U.S. Treasury yields elevated as bets grew that the Fed has further to go in raising rates to tame inflation, though the dollar traded in a narrow range as markets stayed on guard ahead of the payrolls release.

Against the dollar, the euro rose 0.02 to 1.0894, while the New Zealand dollar was nursing losses from the previous session and edged 0.24 higher to 0.61725.

Sterling gained 0.06 to 1.2748, having risen to a twoweek high of 1.2780 on Thursday, as markets bet the Bank of England would raise interest rates to 6.5 early next year, up from a previous expected peak of 6.25.

The strong U.S. data boosted market expectations for a second FOMC rate hike, which previously wasn39;t considered as possible, said Carol Kong, a currency strategist at Commonwealth Bank of Australia, referring to an additional rate hike from the Fed after this month39;s likely…