Economy

Forex - Dollar Climbs Against Other Majors on Fed Statement

Forex - Dollar Climbs Against Other Majors on Fed Statement”

Financial markets fell modestly immediately after the Fed announcement.

The day before, the dollar had rallied against both main rivals and the Dow reached a fresh record high after the United States central bank kept alive the chance of a December increase in American borrowing costs.

Some Fed officials have warned against raising interest rates until inflation - which reflects the prices of everything from meat and cheese to houses and cars - meets the goal of 2% that they consider healthy for the economy.

Zions Bancorporation climbed 1.6%, while Raymond James Financial rose 1.4%.

The central bank's rate-setting panel, the Federal Open Market Committee, said Wednesday that it will keep the federal funds rate in a range of 1 percent to 1.25 percent.

The Nasdaq Composite added 6.68 points, or 0.1 percent, to 6,461.32, also squeaking out a record closing high, slightly above its September 13 close.

Equities in the U.S. rose on Monday, with financial stocks among the top gainers as investors looked ahead to the start of the Federal Reserve's monetary policy committee meeting on Tuesday. Income-seeking investors find those stocks less appealing when bond yields move higher.

Kraft Heinz fell 1.8 percent and NRG Energy lost 1.5 percent.

She also said if prices rose too quickly, the bank would be able to lift rates more rapidly.

"Higher prices for gasoline and some other items in the aftermath of the hurricanes will likely boost inflation temporarily", the Fed warned in its statement. FOMC members' median forecast is for GDP of 2.4 percent this year and for it to hover around 2 percent through 2020. The S&P 500 gained two points, or 0.06%, to 2,508, clocking its sixth record closing high in the last seven sessions. The Dow Jones industrials were little changed.

Gold fell to its lowest level in over three weeks on Thursday as a stronger US dollar and the increasing likelihood of another Federal Reserve interest rate hike this year curbed demand. That neutral rate dropped to 2.9 percent in the new forecast, down from 3 percent in the Fed's June forecast.

In commodities, oil prices rose after Iraq's oil minister said OPEC and other crude producers were considering extending or even deepening a supply cut to curb a global glut, while a report showed a smaller-than-expected increase in USA inventories. Technology stocks were down the most.

The Standard & Poor's 500 index was up a fraction of a point at 2,507. The Nasdaq composite fell 19 points, or 0.3 percent, to 6,442. The Fed expects joblessness to fall even further, to just over 4 percent, in the next few years.

Stocks are narrowly higher in early trading on Wall Street as investors wait to hear from the Federal Reserve. Brent crude, used to price worldwide oils, gained $1.15, or 2.1 percent, to $56.29 a barrel in London. But in the current quarter, the pace of expansion has slowed to 1.7 percent, according to Macroeconomic Advisers, with hurricanes Harvey and Irma, among other factors, dampening activity.

Bed Bath and Beyond plunged 17 percent after reporting earnings and sales that missed analysts' forecasts.



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