By Ece Toksabay

ISTANBUL, Aug 2 (Reuters) - The Turkish lira firmed against the dollar on Friday after the release of U.S. employment data which could make the U.S. Federal Reserve more cautious about drawing down its huge economic stimulus programme.

The lira rose to 1.9295 to the dollar by 1455 GMT from 1.9445 late on Thursday. It also pared back earlier losses against a euro/dollar basket after the U.S. data, trading at 2.2470.

The mixed employment data eased market worries that the U.S. Federal Reserve will start reducing its monthly bond-buying in September, concerns which have led investors to pull cash out of emerging markets including Turkey, pressuring the lira.

The central bank sold $50 million in a forex auction on Friday after the data was announced, further supporting the local currency.

The yield on Turkey's 10-year bond fell slightly to 8.92 percent from 8.95 percent on Thursday.

The central bank has already acted against the impact of capital outflows, raising its overnight lending rate by 75 basis points to 7.25 percent last month after the lira tumbled to record lows against the dollar.

It raised its inflation forecasts for this year and next on Tuesday, saying lira volatility posed a threat to prices, and signalled further interest rate rises.

The main Istanbul share index closed up 0.86 percent at 74,032 points, narrowly outperforming the wider emerging markets index.

(Editing by Nick Tattersall and Catherine Evans) Keywords: MARKETS TURKEY/

(ece.toksabay@thomsonreuters.com)(+90 212 3507052)(Reuters Messaging: ece.toksabay.reuters.com@reuters.net)

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