Dollar weaker around ¥111.40 in Tokyo before FOMC

Dollar weaker around ¥111.40 in Tokyo before FOMC

Dollar weaker around ¥111.40 in Tokyo before FOMC

WALL STREET: Major U.S. benchmarks finished mostly higher.

Tuesday marked the start of a two-day meeting of the USA central bank.

The announcement is a third big policy step for Janet Yellen, now in the final year of her term as Fed chair: She has overseen the end of large-scale asset purchases; the liftoff of rates from zero; and now the pullback from an unprecedented balance- sheet buildup without disruption to financial markets or the economy so far. Still, no one is sure how the financial markets will respond over the long run, he said. Some economists say they think the figure could end up around $2.5 trillion, still far above the $900 billion the Fed held in its portfolio in pre-recession days.

The Norwegian crown was down 0.1 percent against both the euro and the dollar as traders awaited the policy decision by the Norwegian Central Bank due at 0800 GMT. Benchmark U.S. crude dipped 3 cents to $50.66 a barrel added in electronic trading on the New York Mercantile Exchange.

The dollar had weakened against the yen ahead of U.S. President Donald Trump's speech before the United Nations General Assembly. The trade-weighted index rose to 76.25 from 75.97 yesterday.

The kiwi didn't move much after dairy product prices rose at the GlobalDairyTrade auction overnight, pushing the GDT price index up 0.9 percent. The Dow Jones industrials added 41 points, or 0.2 percent, to 22,412.

The programme has successfully kept interest rates down and U.S. unemployment has fallen steadily from a peak of 10% in October 2009 to 4.4% in August this year.

The reaction in the Treasury markets was volatile as expected.

The Russell 2000 index of smaller-company stocks declined 0.1 percent, to 1,440.40.

The Fed also reduced its outlook for inflation on Wednesday, cutting its expectation from 1.7 percent this year to 1.5 percent, and from 2 percent to 1.9 percent in 2018. With many fixed income investors concerned about the effects of higher interest rates, RISE could be an ideal ETF for a rising rate environment.

The metal has fallen 4 percent since hitting a more than one-year high of $1,357.54 earlier this month, as the dollar recovered from lows and as fading concerns over North Korea's nuclear ambitions cut demand for bullion as a haven from risk.

The Fed will scale back its holdings by $10 billion in October and raise that amount gradually in the months to come.

In late NY trading on Wednesday, the euro fell to $1.1895 dollars from 1.1998 dollars in the previous session, and the British pound lost to $1.3485 from $1.3523 in the previous session, Xinhua news agency reported.

USA crude CLcv1 fell 43 cents to settle at $49.48 a barrel, while Brent LCOcv1 declined 34 cents to settle at $55.14.

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