Kevin Buckland TOKYO, Oct 8 Reuters - The dollar edged higher versus major peers on Friday, but within a narrow range as traders waited clues on the pace of Federal Reserve policy normalization in a monthly payrolls report. The U.S. Dollar Currency Index measure the Greenback against a basket of six peers, rose 0.1% to 94.278, keeping within sight of last week's one-year peak of 94.504. The dollar added 0.26% to 111.91 yen and touched 111.93, the highest level this month, helped by higher Treasury yields with the benchmark 10-year note touching 1.6010% for first time since June 4. The euro consolidated around $1.1550 after dipping to a 14 - month low of $1.0029 on Wednesday. The Federal Reserve has said it is likely to start reducing its monthly bond purchases as soon as November and follow up with interest rate increases potentially next year, as the central bank's turn from pandemic crisis policies gains momentum. Friday's non-farm payroll data is expected to show continued improvement in the labour market, with a consensus forecast for 500,000 jobs added in September, although estimates ranged from 250,000 to 700,000, a Reuters poll showed. After the September Federal Open Market Committee Meeting, Chair Jerome Powell wrote the upcoming payrolls report '' needs not be a knock-out, great, super strong report to keep policy makers on track toward tapering. However, it would need to be reasonably good Powell's comment should make markets more stable against a downside surprise in particular, and the balance of risks favours a positive USD reaction to the jobs data, Adam Cole, chief currency strategist at RBC Capital Markets, wrote in a research note Meanwhile, the Australian dollar slipped 0.22% to $7297, following a higher surge on Thursday. It earlier touched $0.7324 for a second day running, the strongest level since Sept. 16. The Aussie's attempted to break higher, but the test will be whether it can stay about $0.7315 after several failed attempts this year, Rodrigo Catril, senior FX strategist at National Australia BankAustralia Bank in Sydney, wrote in a client note. Sterling dropped 0.1% to $1.3600, holding on to most of the gain of 0.26% from Thursday, when new Bank of England Economist Huw Pill said inflation pressures were proving stickier than originally expected, reinforcing expectations for a rate hike in February. The Canadian currency was little changed at C $1.25515 per greenback after earlier strengthening to a one-month peak of C1.0034 on the back of rising oil prices.