* Majors in tight range, cautious ahead of jobs data
* Improved risk appetite boosts high-yielders
* But yen and Swiss franc remain under pressure
(Adds quotes, updates prices)
By Kirsten Donovan
LONDON, Feb 6 (Reuters) - The dollar was hemmed into tight ranges against the euro and yen on Friday, with caution prevailing ahead of U.S. jobs data which is expected to underscore a grim economic picture.
Rising equities suggested a slight improvement in approach to risk, which boosted perceived higher-yielding currencies including the Australian and New Zealand dollars and kept pressure on the yen and Swiss franc.
The dollar recovered against the yen from levels seen in late U.S. trade on Thursday but was still below a nearly one-month high hit as U.S. stocks rallied.
Traders were wary of committing firmly in one direction ahead of data that is expected to show more than half a million U.S. jobs were lost in January.
The U.S. unemployment rate is likely to have climbed to 7.5 percent in January, from 7.2 percent a month earlier, with 525,000 jobs forecast to have been shed.
In a grim precursor to the U.S. report, Canada posted a record number of job losses in January.
"The market is prepared for a weak number so although there will be a bit of volatility over the data, overall so long as equity markets continue to hold up quite well we should have the opportunity to see .... some gains against the dollar," said Ian Stannard, senior FX strategist at BNP Paribas.
At 1247 GMT, the dollar was flat at 91.12 yen after climbing above 92 yen on Thursday, while the euro rose 0.1 percent to 116.66 yen. European shares rose 0.6 percent, while U.S. stock futures pointed to a firmer Wall Street open.
The euro was up 0.1 percent against the dollar at $1.2795.
Data released earlier showed German industrial output fell a larger-than-expected 4.6 percent in December from the previous month.
"The data from the euro zone constantly surprises to the downside, suggesting the market has not fully adjusted their expectations with regards to the euro zone and suggesting the euro will remain under pressure," BNP Paribas' Stannard said.
The European Central Bank kept interest rates unchanged on Thursday but indicated more easing next month, as widely expected.
Analysts also said the euro will remain under pressure as the Russian rouble's decline has prompted Russian authorities to sell euros for dollars to maintain the balance of their reserves portfolio.
The rouble tested its new trading floor against a euro-dollar basket for the first time on Thursday. It was trading just above the trading floor of 41 on Friday.
BEYOND PAYROLLS
Looking past the U.S. payrolls number, analysts said sentiment next week could be dictated by the U.S. administration's bank rescue plan to be unveiled on Monday.
Despite the blanket of bad news, investors were buoyed by hopes U.S. lawmakers will pass a $900 billion stimulus package which President Barack Obama said was needed urgently to stave off "catastrophe".
"The market already expects a weak jobs report, so the financial plan on Monday will be the main driver," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.
Meanwhile, sterling jumped to a two-month high against the euro on Friday, gaining from a growing view that UK interest rates are near their trough compared with the euro zone. The euro was down 0.2 percent at 87.24 pence.
The pound was was up 0.3 percent to $1.4671, after climbing when the Bank of England cut interest rates to a record low of 1 percent on Thursday. (Reporting by Kirsten Donovan; Editing by Ruth Pitchford)