SINGAPORE, Jan 8 Reuters The dollar edged broadly higher on Monday as risk appetite remained subdued ahead of a key U.S. inflation report later in the week that is likely to provide further clarity on the Federal Reserve39;s monetary policy outlook.

The yen was nursing deep losses from last week and struggled near the 145 per dollar level, while the risksensitive Australian and New Zealand dollars edged lower in a cautious start to the week.

Trading was thinned in Asia with Japan out on a holiday.

Against the yen, the dollar fell 0.22 to 144.29, paring some of its gains from last week when it jumped 2.6 on the Japanese currency, its best weekly performance since June 2022.

The kiwi dipped 0.05 to 0.6239, after having slid 1.2 last week, while the U.S. dollar index steadied at 102.43.

The greenback39;s rally was underpinned by a rebound in U.S. Treasury yields as traders tempered their expectations of the pace and scale of Fed cuts this year.

A reading on U.S. inflation due on Thursday could again alter those views, after data on Friday showed U.S. employers hired more workers than expected in December while raising wages at a solid clip, pointing to a stillresilient labour market.

However, a separate survey out the same day showed the U.S. services sector slowed considerably last month, with a measure of employment dropping to the lowest level in nearly 312 years, painting a mixed picture of the world39;s largest economy.

On balance, the key labour market themes…