Joomla core team has taken a sound decision to move to UTF-8 charset, which allows universal languages support.

Please make sure that you save your language file in UTF-8 format. You usualy find this in a menu like Options->Format->charcterset in your favorite modern editor.

For backwards compatibility, you should also use html escapings for non-ASCII characters where available, e.g. & a c u t e for à.

There are some minor issues that needs to be dealt with, I will look into it and upload the finished files later today.

The "danish.php" is now updated to UTF-8

Fixed some minor bugs as well.

Uploaded language file to project area on developer.joomla.org project area for community builder.

see article here