FOREX-US dollar extends losses vs yen, euro after payrolls data

NEW YORK, March 7 (Reuters) - The U.S. dollar extended losses against the euro and yen on Friday, after data showed the world's largest economy created fewer jobs than expected last month, suggesting that the Federal Reserve remained on track to cut interest rates this year.

Nonfarm payrolls increased by 151,000 jobs last month after rising by a downwardly revised 125,000 in January, according to the Labor Department's Bureau of Labor Statistics. Economists polled by Reuters had forecast payrolls gaining 160,000 jobs after a previously reported 143,000 rise in January.

The dollar dropped 0.5% against the yen to 147.29 JPY=EBS. It was at 147.62 yen before the data. The euro, meanwhile, added to gains, rising 0.8% to $1.0876 EUR=EBS.