* US dollar slides to 3-year low after Bernanke
* Wall rebounds slightly on FOMC statement
* U.S. bond prices add to losses after statement
* Fed signals no rush to scale back US economic support
(Adds fresh prices after Bernanke comments)
By Al Yoon and Herbert Lash
NEW YORK, April 27 (Reuters) - The U.S. dollar slid to a
three-year low against major currencies and global stocks edged
higher on Wednesday after the Federal Reserve signaled it would
retain extensive support for the U.S. economy.
Wall Street rebounded a bit and oil prices nudged up after
the Fed said in a statement it believed the recovery was
proceeding at a moderate pace, with little risk of inflationary
pressure. For details see: []
But the dollar later pared gains against the yen and slid
to a fresh three-year low against six major currencies after
Fed Chairman Ben Bernanke gave little indication the U.S.
central bank is close to tightening monetary policy.
[]
Gold rose to a record high above $1,520 an ounce, its
eighth record high in nine trading sessions. []
Bernanke spoke at the first regularly scheduled news
briefing by a Fed chief. He said a strong dollar was in the
U.S. interest and the Fed could best ensure a strong currency
by creating conditions for solid growth.
The dollar, which has been under persistent pressure in
recent months, fell to its lowest since 2008 against a basket
of six currencies. The dollar index <.DXY> fell as low as
73.445, not far from an all-time low hit in July 2008.
Investors gave Bernanke high marks. "He struck the right
balance between education, straightforwardness and the
limitations of making policy in an uncertain world, said David
Joy, chief market strategist at Columbia Management in Boston.
"He even closed with a note of optimism," Joy said.
Bernanke's comments came after the policy-setting Federal
Open Market Committee said that it intends to end its $600
billion bond-buying program in June as scheduled and suggested
it would not let its balance sheet run down immediately.
The language, along with a continued showing of solid
corporate earnings, helped bolster Wall Street's gains.
"The tweaks in the QE2 language strongly suggest they are
going to continue not only with QE2 but reinvesting mortgage
cash flows," said Max Bublitz, chief investment strategist at
SCM Advisors in San Francisco.
The Dow Jones industrial average <> was up 65.88
points, or 0.52 percent, at 12,661.25. The Standard & Poor's
500 Index <.SPX> was up 4.58 points, or 0.34 percent, at
1,351.82. The Nasdaq Composite Index <> was up 14.51
points, or 0.51 percent, at 2,862.05.
The price of U.S. 30-year Treasury bonds fell to session
lows, losing nearly 1 point, after the Federal Reserve lifted
its inflation forecasts. []
The 30-year U.S. Treasury bond <US30YT=RR> was down 37/32
in price to yield 4.46 percent. The benchmark 10-year U.S.
Treasury note <US10YT=RR> yielded 3.37 percent, down 17/32 in
price.
The dollar slipped to 82.20 yen <JPY=> from about 82.35
yen, still up 0.9 percent on the day.
The euro bounced around but remained higher on the day,
last changing hands at $1.4747 <EUR=>, up 0.72 percent.
Crude prices rose in choppy trading after government data
showed declining U.S. gasoline stockpiles. []
U.S. crude oil for May delivery <CLc1> settled at $112.76 a
barrel, gaining 55 cents. In London, May Brent crude <LCOc1>
closed at $125.13 a barrel, up 99 cents.
(Reporting by Ryan Vlastelica, Richard Leong in New York;
Harpreet Bhal Alex Lawler, Amanda Cooper in London; Writing by
Herbert Lash; Editing by Andrew Hay)
