* Dollar rises vs yen, falls versus euro after jobs data
* Improved risk appetite boosts high-yielders
* U.S. January nonfarm payrolls falls 598,000 (Adds comments, details, updates prices)
By Vivianne Rodrigues
NEW YORK, Feb 6 (Reuters) - The U.S. dollar rose versus the yen on Friday as a report showing deterioration in the U.S. labor market boosted investors' expectations for further government intervention to stimulate the economy.
U.S stocks also rose after the Labor Department said employers slashed 598,000 jobs in January, the deepest cut in payrolls in 34 years. For details, see [ID:nN05289845]
The dismal figures may provide an incentive for U.S. legislators to support the Obama administration's fiscal stimulus program and its bank rescue plan, which will be unveiled Monday, traders said.
"Looking beyond today's terrible figures, everybody now expects the President's rescue plan to pass and pass fast," said Gregory Salvaggio, a vice president for trading at Tempus Consulting in Washington. "That is helping lift stocks and is taking some risk off the table, which in turn leads the market to sell yen and buy back some dollars."
In mid morning trading in New York, the dollar was 0.6 percent higher at 91.67 yen . The euro was up 0.5 percent on the day at $1.2848 . Continued...
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