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 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 to be unveiled Monday, traders said. "Looking beyond today's terrible figures, now everybody 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 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 . "The market was looking beyond this number, waiting to get it out of the way and to focus on stimulus and the banking sector bailout," Brian Dolan, chief currency strategist at Forex.com, in Bedminster, New Jersey.

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