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Graphic: World FX rates Link

By Karen Brettell

NEW YORK, Jan 6 (Reuters) - The dollar erased earlier gains after U.S. jobs data showed employers added 223,000 jobs in December, more than economists’ forecasts, while wage growth in the month eased.

Economists had expected 200,000 jobs would be added. Wages grew by 0.3% last month, a drop from 0.4% in November and below forecasts of 0.4%. That lowered the year-on-year increase in wages to 4.6% from 4.8% in November.

"There was a bit of a fear that this could be quite a blockbuster print in terms of job growth," which was a risk due to seasonal adjustments that are common in December, said Mazen Issa, senior foreign exchange strategist at TD Securities in New York.

The easing wage growth was also "encouraging," Issa added, though he noted that there were hawkish elements in the data.

"You had the unemployment rate dropping, which was not expected, and an increase in the participation rate," Issa said. "This number doesn’t do anybody any favors in determining whether the Fed needs to do 25 or 50 at its next meeting."

The dollar was last little changed on the day against a basket of currencies =USD at 105.11, after earlier reaching 105.63, the highest since Dec. 7.

The euro EUR=EBS was also flat on the day at $1.0524, and the dollar gained 0.20% against the yen JPY=EBS to 133.64.

The Federal Reserve hiked rates by 50 basis points at its December meeting, after making four consecutive 75-bp increases.

Fed funds futures traders increased bets the Fed will hike rates by 25 bps at the conclusion of its two-day meeting on Feb. 1 after Friday's data. A 25-bp increase is now seen as a 67% probability, compared with 54% before, with a 50-bp hike now seen as a 33% probability. FEDWATCH

Highly anticipated consumer price data due on Jan. 12 could influence U.S. central bank policy.

It is expected to show that headline prices were unchanged in December while core prices increased 0.3%. USCPI=ECI USCPF=ECI

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Currency bid prices at 9:32AM (1432 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

105.1100

105.1200

+0.01%

1.565%

+105.6300 +104.9200 Euro/Dollar

EUR=EBS

$1.0524

$1.0521

+0.01%

-1.80%

+$1.0545

+$1.0482 Dollar/Yen

JPY=EBS

133.6350

133.4100

+0.20%

+1.96%

+134.7650 +133.2500 Euro/Yen

EURJPY=

140.65

140.36

+0.21%

+0.25%

+141.4400 +140.2400 Dollar/Swiss

CHF=EBS

0.9369

0.9363

+0.11%

+1.37%

+0.9407

+0.9348 Sterling/Dollar GBP=D3

$1.1906

$1.1908

-0.03%

-1.56%

+$1.1935

+$1.1842 Dollar/Canadian CAD=D3

1.3536

1.3568

-0.21%

-0.07%

+1.3664

+1.3524 Aussie/Dollar

AUD=D3

$0.6768

$0.6752

+0.19%

-0.76%

+$0.6790

+$0.6722 Euro/Swiss

EURCHF=

0.9860

0.9851

+0.09%

-0.35%

+0.9883

+0.9849 Euro/Sterling

EURGBP=

0.8839

0.8835

+0.05%

-0.06%

+0.8870

+0.8823 NZ

NZD=D3

$0.6249

$0.6223

+0.39%

-1.61%

+$0.6262

+$0.6193 Dollar/Dollar

Dollar/Norway

NOK=D3

10.1625

10.2595

-0.76%

+3.74%

+10.3005

+10.1700 Euro/Norway

EURNOK=

10.6938

10.7654

-0.67%

+1.91%

+10.8140

+10.6993 Dollar/Sweden

SEK=

10.6672

10.6804

-0.07%

+2.49%

+10.7479

+10.6415 Euro/Sweden

EURSEK=

11.2214

11.2290

-0.07%

+0.64%

+11.2924

+11.2198
Editing by Jan Harvey and Nick Macfie