Euro Climbs on ECB Skepticism as SNB Fallout Dents Dollar, Franc

The euro advanced the most in more than a month against the dollar amid speculation any additional stimulus measures announced by the European Central Bank at its policy meeting will fall short of analyst forecasts.

The greenback also declined amid speculation traders, hurt by the Swiss National Bank’s decision to remove its trading limit against the shared currency, are paring the market risk they are prepared to take. The Swiss franc dropped at least 1.1 percent against all 16 of its major peers, trimming its surge in the wake of the central bank’s removal of the 1.20-per-euro floor. The Danish central bank said it wouldn’t follow Switzerland abandoning its currency peg after it cut interest rates today. ECB policy makers will meet on Jan. 22 to discuss introducing new stimulus, including quantitative easing.