Dollar Falls to 3-Week Low as Fed Keeps Interest Rates Unchanged

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The dollar fell to a three-week low after the Federal Reserve held off on raising interest rates.

The U.S. central bank declined to boost its short-term interest-rate target at its policy-setting meeting in Washington, opting to delay an increase amid stubbornly low inflation, an uncertain outlook for global growth and recent financial-market turmoil.

The Bloomberg Dollar Spot Index dropped 0.4 percent percent to 1,196.46 as of 2:10 p.m. in New York, reaching the lowest level since Aug. 26. The U.S. currency declined 0.8 percent to $1.1378 per euro.

Source : Bloomberg

Oil Holds Near $47 After Federal Reserve Leaves Rates Unchanged

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Oil traded near $47 a barrel after the Federal Reserve left interest rates unchanged.

Futures edged lower in New York after climbing 5.7 percent Wednesday on an unexpected decline in U.S. crude stockpiles. The dollar dropped after the U.S. central bank declined to boost its short-term interest-rate target at its policy-setting meeting in Washington. A weaker U.S. currency bolsters the appeal of commodities priced in the greenback as a store of value.

Oil is down 23 percent from this year’s peak in June amid a persistent global oversupply. U.S. crude inventories remain about 100 million barrels above the five-year seasonal average after government data Wednesday showed an unexpected decline last week.

West Texas Intermediate for October delivery slipped 25 cents, or 0.5 percent, to settle at $46.90 a barrel on the New York Mercantile Exchange. It was $46.75 before the decision was announced at 2 p.m. in Washington.

Source: Bloomberg

Gold Prices Head Higher After Fed Stands Pat on Rates

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Gold futures climbed in electronic trading Thursday, as the Federal Reserve left interest rates unchanged.

Prices for the metal had settled with a loss Thursday shortly before the Fed announcement, which was one of the most anticipated in recent memory.

In its announcement, the central bank implied a hike is still on tap before the end of the year.

Following the Fed announcement, gold for December delivery traded at $1,127.20 an ounce in electronic trading on Globex. That’s up from an earlier settlement on Comex, where prices fell $2, or 0.2%, to settle at $1,117 Thursday.

The U.S. dollar index traded sharply lower after the Fed news, providing support for dollar-denominated gold in the electronic session.

On Wednesday, prices registered their largest single-session gain in nearly a month as the Fed was seen as reluctant to lift rates in the wake of a weak reading on U.S. inflation.

On Thursday, data showed weekly jobless claims fell, underscoring the strength of the labor market, but declines in August housing starts and the September Philadelphia Fed’s manufacturing index highlighted potential economic concerns.

Other metals on Thursday settled mixed ahead of the Fed decision. December silver rose 9.9 cents, or 0.7%, to $14.984 an ounce and December copper ended flat at $2.452 a pound. October platinum shed $7.30, or 0.8%, to $968.40 an ounce and December palladium lost $12.75, or 2.1%, to $599.20 an ounce.

Source : MarketWatch

U.S. Stocks Drop as Rate Decision Fuels Global Economy Concern

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U.S. stocks ended lower, after swinging between gains and losses, as the Federal Reserve’s decision to keep interest rates near zero percent raised questions about the strength of the global economy.

The Fed kept its policy interest rate unchanged, showing reluctance to end an era of record monetary stimulus in a time of market turmoil, rising international risks and slow inflation at home. Stocks erased an advance after Chair Janet Yellen indicated that risks in the global economy overshadowed signs of strength in America while inflation remained stubbornly low.

The Standard & Poor’s 500 Index fell 0.3 percent to 1,990.19 at 4 p.m. in New York, reversing a gain of as much as 1.3 percent. Stocks most sensitive to interest rates had the largest moves, with utilities and real-estate companies advancing more than 0.9 percent while banks lost 2.4 percent.

The decision to stand pat on rates keeps a pillar of the bull market in place, as record-low borrowing costs have helped propel stocks higher by nearly 200 percent in the past 6 1/2 years.

It also amplifies uncertainty about the strength of the American economy at a time financial markets have been roiled by concern that a slowdown in China will spread. The S&P 500 had fallen 3.1 percent this year through Wednesday after three years of double-digit gains.

Source: Bloomberg

U.S. Stocks Fluctuate With Treasuries Before Fed Rate Decision

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U.S. shares fluctuated near a four-week high, while Treasuries and the dollar were little changed as investors turned cautious before the Federal Reserve renders its decision on interest rates.

Futures traders see only a 30 percent chance that policy makers will raise rates on Thursday at the same time 54 of 113 economists surveyed by Bloomberg predict some kind of increase. Investors have dialed back expectations for higher rates since China devalued its currency last month, sparking a sell-off in global markets.

The Standard & Poor’s 500 Index rose 0.1 percent at 12:27 a.m. in New York and the Stoxx Europe 600 Index slipped 0.2 percent. Both gauges have closed higher in each of the past two days.

The S&P 500 gained 2.7 percent in the five days through Wednesday, its biggest rally leading up to a rate decision since August 2012.

Reports on Thursday showed that while new-home construction in the U.S. fell in August, jobless claims declined to a two-month low last week, highlighting a resilient labor market.

Source: Bloomberg