Adds more background, analyst comment and updates prices throughout

By Chibuike Oguh

NEW YORK, July 3 (Reuters) - The U.S. dollar rose against major currencies including the yen, euro and Swiss franc on Thursday after data showed that the U.S. economy created more jobs than analysts estimated, signaling the Federal Reserve might take longer to cut interest rates.

The dollar strengthened 0.70% to 144.705 versus the Japanese yen JPY=EBS and was up 0.40% to 0.79510 against the Swiss franc CHF=EBS. The U.S. currency is on track to notch a second consecutive session of gains against both safe-haven currencies.

The euro EUR=EBS was 0.26% weaker at $1.1769. It is on track for the second straight day of losses.

U.S. Labor Department data on Thursday showed that nonfarm payrolls increased by 147,000 jobs in June. Economists polled by Reuters had forecast a rise of 110,000. The report was published a day early because of the July 4 U.S. Independence Day holiday.

"It will be very difficult for the Fed to cut rates in this environment, with the labor market so strong," said Axel Merk, president and chief investment officer at Merk Hard Currency Fund in California. "The argument that Jerome Powell has made for the Fed to stay on the sidelines continues to hold."

The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.27% to 97.01, on track for two straight sessions of gains, although it is still near multi-year lows.

The rise in the dollar following the data was accompanied by an increase in U.S. Treasury yields. The 2-year note US2YT=RR yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 9.1 basis points to 3.88%. The yield on benchmark U.S. 10-year notes US10YT=RR rose 4.1 basis points to 4.344%.

Wall Street stock indexes including Dow Jones Industrial Average .DJI, the benchmark S&P 500 .SPX and the Nasdaq Composite .IXIC were all up on the session.

Republicans in the U.S. House of Representatives advanced President Donald Trump's massive tax-cut and spending bill toward a final yes-or-no vote early on Thursday.

The U.S. has lifted restrictions on exports to China for chip design software developers and ethane producers, a sign of easing trade tensions between the countries. The dollar CNH= strengthened 0.06% to 7.164 versus the offshore Chinese yuan.

The British pound GBP=D3 rose after losing ground in the previous session following a selloff in gilts. British Prime Minister Keir Starmer's office backed finance minister Rachel Reeves, easing concerns over her future. The pound strengthened 0.15% to $1.3656.

(Reporting by Chibuike Oguh in New York. Editing by Alex Richardson and Mark Potter)

((Chibuike.Oguh@thomsonreuters.com; Phone: +332-219-1834; Reuters Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))