The euro rose a second day versus the dollar before Germany’s chancellor and the International Monetary Fund’s managing director meet amid optimism Europe’s leaders are taking steps to resolve the debt crisis.

The 17-nation currency also strengthened against the yen after advancing Monday, January 9 as the leaders of Germany and France discussed a rulebook for closer fiscal union within the euro area. The franc maintained a three-day gain versus the euro on prospects traders may test Switzerland’s currency ceiling after central-bank Chairman Philipp Hildebrand’s resignation. The Australian and New Zealand dollars climbed as Asian stocks rose, boosting demand for higher-yielding assets.

“Some positive comments from European leaders are assisting the euro, though traders are cautious, waiting to see what action plan is put in place and how bond yields react,” said Tim Waterer, a currency dealer at CMC Markets in Sydney. “Short-term we could see the euro crawl back up to $1.2850.”

German Chancellor Angela Merkel said Greece would be the focus of talks with IMF Managing Director Christine Lagarde on Tuesday in Berlin. “We want Greece to stay in the euro,” Merkel said in a joint press conference with French President Nicolas Sarkozy after the two leaders met Monday, Bloomberg reported.