* Dollar, yen slump vs euro on stimulus package hope

* Bleak jobs data fuels expectation Obama will act fast

* U.S. loses 598,000 jobs in January, worst in 34 years

* Improved risk appetite boosts high-yielders (Adds details, updates prices, changes byline)

By Wanfeng Zhou

NEW YORK, Feb 6 (Reuters) - The dollar and the yen tumbled versus the euro on Friday after a bleak U.S. jobs report boosted hopes that Congress will quickly pass a stimulus package to help lift the economy out of recession.

Wall Street stocks rallied despite news from the Labor Department showing employers slashed 598,000 jobs in January, the deepest cut in monthly payrolls in 34 years. For details, see [ID:nnN06435445]

The dismal figures may provide an incentive for U.S. lawmakers to support the Obama administration's fiscal stimulus program and its bank rescue plan, traders said. The plan will be unveiled on Monday.

The dollar and the yen have benefited from extreme risk aversion in the market amid persistent worries over more woes in the banking sector and a deepening slowdown around the world.