GLOBAL MARKETS-US dollar at 3-year low, stocks slip before Fed

                                
 * US dollar index at 3-year low, no change seen from Fed
                                
 * World stocks edge higher, Europe up for fifth session
                                
 * Silver rebounds after sharp losses
                                
 (Adds fresh prices)
                                
 By Al Yoon and Herbert Lash
                                
 NEW YORK, April 27 (Reuters) - The U.S. dollar fell to a
three-year low and world equity markets nudged lower on
Wednesday ahead of a Federal Reserve decision that is expected
to reaffirm its easy monetary policy.
                                
 Wall Street was slightly lower as investors await remarks
by Fed Chairman Ben Bernanke at his first-ever news conference
on monetary policy at the end of a two-day meeting of
policy-makers. For details see: [ID:nN26291565]
                                
 Bernanke will likely hammer home the case for a patient
approach to withdrawing the Fed's extensive support for the
U.S. economy after the Federal Open Market Committee releases a
statement on interest rate policy at 12:30 p.m. (1630 GMT).
                                
 "There's a good deal of uncertainty going into the meeting
and people have moved their positions to be as neutral as
possible," said Tom Mangan, who helps oversee $2.4 billion as a
money manager at James Investment Research Inc in Xenia, Ohio.
                                
 "I'd caution against being too bullish, since if there are
any surprises that could be a catalyst for selling," he said.
                                
 The dollar <.DXY> skidded to a low of 73.493 on the
Intercontinental Exchange's dollar index before a slight
reboud, driven by the widening gap of interest rates set by the
U.S. and other major central banks. For details see:
[ID:nN27130671]
                                
 The dollar index is almost 10 percent below its peak in
January and many traders expect it eventually to revisit an
all-time low of 70.698 hit in 2008.
                                
 The dollar index <.DXY> was up 0.09 percent at 73.901.
                                
 The Fed is set to confirm it will complete its $600 billion
bond-buying program and renew its commitment to rock-bottom
borrowing costs for "an extended period" in its statement on
Wednesday [ID:nN26273939].
                                
 "The Fed is trying to walk a very fine line right now,"
said Julia Coronado, chief economist of North America at BNP
Paribas in New York.
                                
 While the Fed continues to print money, the European
Central Bank raised rates for the first time in two years this
month and is poised for a repeat dose before too long.
                                
 The euro <EUR=> was down 0.01 percent at $1.4641 after
breaking above $1.47 for the first time since December 2009.
                                
 The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 17/32 in price to yield 3.37 percent.
                                
 The U.S. government reported orders for durable goods
increased 2.5 percent in March, greater than the 2.0 percent
rise expected in a Reuters poll of economists.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
                                
 Fed funds rate expectations: http://r.reuters.com/xyz48r
                                
 Fed QE timelines:            http://r.reuters.com/faq98r
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 WORLD STOCKS SLIP
                                
 The Dow Jones industrial average <.DJI> was up 6.59 points,
or 0.05 percent, at 12,601.96. The Standard & Poor's 500 Index
<.SPX> was down 1.41 points, or 0.10 percent, at 1,345.83. The
Nasdaq Composite Index <.IXIC> was down 2.22 points, or 0.08
percent, at 2,845.32.
                                
 World stocks as measured by the MSCI all-country world
index <.MIWD00000PUS> pared earlier gains to slip to just below
break-even at 351.89.
                                
 The FTSEurofirst 300 index <.FTEU3> of top European shares
rose 0.3 percent at 1,149.35, gaining ground for the fifth
session as investors focused on strong results from bellwethers
such as Ericsson <ERICb.ST> and Renault <RENA.PA>.
                                
 U.S. light sweet crude oil <CLc1> fell 42 cents to $111.79
a barrel.
                                
 Aside from the ECB, Asian and Latin American central banks
have also been tightening monetary policy for some time.
                                
 The split in monetary policy has helped revive the "carry
trade," in which investors borrow in a low-yielding currency to
invest in higher-yielding assets or currencies.
                                
 Investors have been snapping up the high-yielding
Australian dollar <AUD=D4> -- against which the greenback hit a
29-year low on Wednesday following a big jump in Australian
inflation -- while China let the yuan <CNY=SAEC> rise to a
post-2005 revaluation high, triggering gains in emerging Asian
currencies.
                                
 SILVER LINING
                                
 Silver, the superstar commodity of the year, steadied from
a three percent fall on Tuesday, its biggest one-day loss in
six weeks, which followed Monday's rally to near record
levels.
                                
 Spot silver <XAG=> firmed slightly to $45.78 an ounce and
is on track for a 21 percent gain this month and a 47-percent
rise this year, making it the top performing precious metal.
                                
 Spot gold prices <XAU=> fell 4 cents to $1,506.90 an
ounce.
 (Additional reporting by Naomi Tajitsu in London, Blaise
Robinson in Paris and Ian Chua in Sydney; Writing by Herbert
Lash)