FOREX-Dollar rises broadly after jobs data, ECB remarks

* Dollar rises broadly after U.S. jobs data

* ECB hikes rates to 4.25 pct as expected

* Trichet remarks on rates less aggressive than expected (Recasts, adds comments)

By Vivianne Rodrigues

NEW YORK, July 3 (Reuters) - The dollar rose on Thursday after U.S. payroll data suggested the job market had not deteriorated as much as many investors had feared while the European Central Bank president struck a less aggressive tone on prospects for rate hikes in the euro zone

Demand for the greenback started to rise after a U.S. jobs report for June came in line with expectations. Traders said a sharper-than-expected decline in payrolls would have triggered a sell-off in the U.S. currency.

As the same time the jobs data was being released, ECB President Jean-Claude Trichet said the current level of interest rates would help contribute to achieving the bank's price stability goal. The ECB earlier raised its key rate as expected by 25 basis points to 4.25 percent.

Analysts said the remarks suggest that the ECB's rate hike on Thursday was a one-off event and that further rate rises will depend on economic data. Trichet also said downside risks to the euro zone economy persist.

"The unemployment number really didn't break the dollar's back. The market was so bearish that I thought we would see a minus-100 print, so this is moderately good news," said Boris Schlossberg, senior currency strategist, at DailyFX.COM, in New York.