Asian session: The dollar advanced to the highest level in 3 1/2 years versus the yen

02:00 China Trade Balance, bln February 29.2 -8.8 15.3

05:00 Japan BoJ monthly economic report March

05:00 Japan Eco Watchers Survey: Current February 49.5 51.2 53.2

05:00 Japan Eco Watchers Survey: Outlook February 56.5 57.7

The dollar advanced to the highest level in 3 1/2 years versus the yen on speculation an improving labor market will compel the Federal Reserve to slow stimulus even as Japan pledges to extend easing policies.

Demand for the dollar increased before a report that may show U.S. employers added more jobs in February. Economists in a Bloomberg News survey estimate the Labor Department will say today that U.S. payrolls expanded by 165,000 in February after a 157,000 gain the prior month, while the jobless rate likely held at 7.9 percent.

Europe’s common currency held gains against the dollar from yesterday after European Central Bank President Mario Draghi stuck to his view that the region will gradually recover later this year.

The yen is set to decline this week against its 16 major peers as data showed Japan had a current account deficit for a third-straight month. In Japan, Ministry of Finance data today showed the deficit in the current account, the widest measure of trade, was 364.8 billion yen ($3.8 billion) in January, compared with the median economist estimate of a 611.5 billion yen gap.

The Australian and New Zealand dollars fell after a report showed a bigger-than-expected decline in imports for China, the South Pacific nations’ biggest trading partner. China’s customs administration said today imports fell 15.2 percent in February from a year earlier, after a 28.8 percent increase in January. The median estimate of economists surveyed by Bloomberg News was for an 8.5 percent decline in imports.

EUR/USD: during the Asian session the pair fell slightly to $1.3085.

GBP/USD: during the Asian session the pair fell to $ 1.4980.

USD/JPY: during the Asian session, the pair rose to Y95.85.