United States dollar surges after Fed policy statement

THE FED: Investors were looking ahead to the latest two-day policy meeting of the U.S. Federal Reserve, which begins Tuesday.

Gold performed slightly better in Wednesday's early trades as the dollar dithered.

The US central bank has signalled its plans for months in an effort to avoid rattling markets.

While the USA central bank is not expected to raise interest rates this week, remarks from the Fed and its boss Janet Yellen will be pored over for clues about future moves - with talk of another rise - and its plans to wind down the vast bond-buying stimulus put in place during the financial crisis.

Fed chair Janet Yellen said in a press conference after the end of the meeting that the fall in inflation this year remained a mystery, adding that the central bank was ready to change the interest rate outlook if needed.

The focus for this week is the Fed's September 19-20 policy meeting.

Instead of reinvesting all the proceeds of its bond portfolio, the Fed will allow $10 billion to roll off at first, increasing quarterly in $10 billion increments until the total hits $50 billion starting in October 2018.

OIL: Benchmark U.S. crude rose 1.1 percent to $50 a barrel on the New York Mercantile Exchange while Brent crude, used to price worldwide oils, advanced by the same rate to $55.77 per barrel in London.

The consumer staples sector fell 0.9 percent while the utilities sector ended 0.8 percent lower.

Vikings' Sam Bradford inactive Week 2 against Steelers
The Vikings are a better team against the run than the Browns are, making Pittsburgh's task this week a bit hard . A play where rookie Juju Smith-Schuster took a shovel pass and rumbled into the end zone from the four-yard-line.

USA data showing domestic home construction fell for a second straight month in August weighed on the dollar index earlier.

"As that balance sheet drops, that's potentially going to leave us with higher long-term rates".

"That competes with Google and Microsoft, and it's going to weigh on the entire tech space" because of price competition, said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

The S&P 500 gained 1.59 points, or 0.06 percent, to 2,508.24, clocking its sixth record closing high in the last seven sessions.

Oil prices gained about 2 percent despite a rise in USA crude inventories.

As yields rise, fixed-income investors may find it harder to sit with traditional bond exposures.

The Fed also kept its benchmark interest rate steady at its current range of one to one-and-a-quarter percent, while hinting at one more hike, before the end of the year.

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

After rising to new record highs in the previous session, stocks may see some further upside in early trading on Tuesday. Brent crude, used to price global oils, gained 14 cents to $56.15 a barrel in London.


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