Sterling inches up against dollar as U.S. jobs disappoint

* Pound strengthens as U.S. jobs growth slower than hoped * Pound risks losing shine amid darker economic outlook * Sterling last seen at $1.3838 (Recasts) By Lawrence White LONDON, Sept 3 - Sterling rose to a three-week high on Friday afternoon after a weaker than expected U.S. jobs report cast doubt on the Federal Reserve's plan to taper its asset purchase policy, which will in turn impact the dollar.

* Pound strengthens as U.S. jobs growth slower than hoped * Pound risks losing shine amid a darker economic outlook

* Sterling is last seen at $1.3838 (Recasts) By Lawrence White

Sterling rose to a three-week high on Friday afternoon after a weaker than expected U.S. jobs report cast doubt on the Federal Reserve's plan to taper its asset purchase policy, which will, in turn, impact the dollar. U.S. nonfarm payrolls increased by 235,000 in August, well below economists' average forecast of 750,000 in a Reuters poll.

That, in turn, could mean the Fed shies from its plan to slow this year its long-term policy of quantitative easing via massive asset-buying. At 1242 GMT, the pound was up 0.03% against the dollar at $1.3838, having hit a high of $1.3865 shortly after the jobs report was published. That high was last seen on Aug. 16.

The pound had seen listless trading this week in the absence of major British economic data or policymaker speeches. The speed of Britain's COVID-19 vaccination program had contributed to the pound being the best performer among G10 currencies this year, but it has since lost that crown amid some potential clouds on the economic horizon.

Those included slowing credit card spending, fewer positive data surprises, and rising virus cases among the elderly, analysts at Nomura said.