The dollar rose broadly the previous day after the Institute for Supply Management's services index for June rose to its highest level in a year, beating forecasts for a small decline. Investors awaited high-profile U.S. payrolls data due later in the session for more clues about the future path of the Fed's monetary policy. The dollar held gains on Friday, staying off a two-month low against the euro and a 26-year trough versus sterling after strong U.S. services data soothed concerns the Federal Reserve may cut interest rates later this year "The dollar is likely to rise, especially against the yen, if figures in the U.S. jobs report are strong," said Tsutomu Soma, a senior manager at Okasan Securities. A report on Thursday from private employment services company ADP Employer Services pointed to strong jobs growth/ Economists' median forecast was for 120,000 new jobs to have been created in June compared with 157,000 jobs in May, while the unemployment rate was seen unchanged at 4.5 percent. The dollar was under pressure earlier this week on worries about weakness in the housing market and subprime mortgage woes, as well as security concerns ahead of Wednesday's Independence Day holiday. Traders said the dollar was poised for more upward correction, as data released so far this week showed signs of economic strength, boosting expectations that the Fed will leave the benchmark funds rate at 5.25 percent for some time.