The dollar was 0.1 percent from a one-week high versus the euro as signs of improving U.S. employment support the Federal Reserve’s decision to hold off from increasing monetary accommodation.

The U.S. currency rose against most of its 16 major peers ahead of a private report forecast to show gains in employment in March held near the most in two months. The euro was 0.9 percent from its lowest level in a week versus the yen before European Central Bank officials meet on policy amid signs of slowing growth. The Australian and New Zealand dollars fell as Asian shares opened lower.

“U.S. monetary policy will stay status quo for the foreseeable future,” said Thomas Averill, managing director in Sydney at Rochford Capital, a currency and interest-rate risk- management company. “The U.S. dollar, particularly against the euro, is a bit of a buy at these levels in the short term.”

The dollar was at $1.3225 per euro at 10:14 a.m. in Tokyo from $1.3233 yesterday when it reached $1.3214, the strongest since March 26. It added 0.1 percent to 82.87 yen. Europe’s shared currency bought 109.60 yen after sliding as much as 0.6 percent to 108.70 yesterday, the lowest since March 23.

“A couple of members indicated that the initiation of additional stimulus could become necessary if the economy lost momentum,” according to the Fed’s March meeting minutes released yesterday in Washington. That contrasts with the assessment at the January meeting, in which some officials saw current conditions warranting additional action “before long.”

Jobs Data

Figures based on payrolls from ADP Employer Services due to be published today may show U.S. employment increased by 206,000 last month, according to the median estimate of economists surveyed by Bloomberg News. That compares with a gain of 216,000 in February, the biggest in two months.

Data from the Labor Department due tomorrow will probably indicate applications for jobless insurance fell to 355,000 in the week ended March 31, the least since April 2008. A separate report on April 6 is projected to show employment rose by more than 200,000 workers for a fourth-consecutive month.

“We are far below maximum employment and are likely to remain there for some time,” San Francisco Fed President John Williams said yesterday in San Diego. “Under these circumstances, it’s essential that we keep strong monetary stimulus in place. The recovery has been sluggish.”

Growth Forecasts

Williams forecast U.S. economic growth of 2.5 percent this year and 2.75 percent in 2013. That compares with estimated gains gross domestic product of 2.2 percent this year and 2.4 percent next year, according to median projections in a Bloomberg poll.

The U.S. dollar will be at $1.31 per euro and 84 yen by the end of 2012, a separate survey of financial companies showed.

Demand for the euro was tempered before ECB policy makers gather for an interest-rate decision today. Officials are expected to keep the bank’s key rate unchanged at 1 percent, according to all 57 forecasters polled before the meeting.

Retail sales in the euro-area probably dropped 0.2 percent in February after a 0.3 percent gain the previous month, according to the median estimate in a separate survey.

“I don’t expect anything new out of the ECB meeting,” Rochford’s Averill said. “The European economy is struggling in comparison to the U.S. I think there’s very little economic reason for the euro to appreciate against the U.S. dollar.”

The euro has lost 0.7 percent in the past week, the second- worst performance after the Australian dollar among the 10 developed-nation currencies tracked by Bloomberg Correlation- Weighted Indexes.

Australia’s dollar slid 0.3 percent to $1.0300 and touched $1.0289, the weakest since Jan. 16. New Zealand’s currency fell 0.2 percent to 81.72 U.S. cents. The MSCI Asia Pacific Index of shares lost 0.5 percent.

To contact the reporters on this story: Kristine Aquino in Singapore at kaquino1@bloomberg.net; Monami Yui in Tokyo at myui1@bloomberg.net

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net

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