The dollar held a decline against the euro amid speculation the Federal Reserve will expand monetary stimulus at a two-day meeting starting today. The 17-nation euro snapped a three-day drop against the yen even as the prospect of a comeback by former premier Silvio Berlusconi sent Italy’s bonds lower. The Australian dollar reached a five-week low against its New Zealand counterpart after business confidence dropped to the least since 2009. The Swiss franc weakened at least 0.2 percent against all of its 16 major peers as UBS AG followed Credit Suisse Group AG in saying it will charge bank clients for deposits made in the currency. “The Fed is going to act this week, which is keeping pressure on the dollar,� said Jane Foley, a senior currency strategist at Rabobank International in London. “The weakness of the dollar is keeping a floor under euro dollar, limiting any further fallout that may come from Italy or the eurozone.� The dollar was little changed at $1.2946 per euro at 8:57 a.m. London time, following yesterday’s 0.1 percent drop. It traded at 82.39 yen. The euro advanced less than 0.1 percent to 106.66 yen after dropping 1.1 percent in the past three days. The so-called Aussie reached NZ$1.2533, the weakest since Nov. 5, before trading 0.2 percent lower at NZ$1.2540. The Swiss franc fell 0.3 percent to 1.2120 after dropping 0.4 percent, the steepest decline in a week. To contact the reporters on this story: Monami Yui in Tokyo at myui1@bloomberg.net; David Goodman in London at dgoodman28@bloomberg.net To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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