Dollar briefly dives below ¥113 on Fed rate forecasts

Stocks rose and easily absorbed the latest increase in interest rates by the Federal Reserve a move that was widely expected

Stocks rose and easily absorbed the latest increase in interest rates by the Federal Reserve a move that was widely expected

The S&P 500 rose 0.8 percent one day after the Fed's decision.

On Thursday, Hong Kong stocks were up 1.7 percent, Shanghai adding 0.8 percent and Seoul advancing 0.8 percent.

Data on Friday showed a steadily improving USA economy, with manufacturing output rising for a sixth straight month in February and preliminary consumer confidence for the month of March increasing as well. "The Dutch election result was consistent with the opinion polling, and obviously the Fed has delivered a rate hike, but in its most dovish form", said Bank of America G10 currency strategist Kamal Sharma.

At 9:37 a.m. ET, the Dow Jones Industrial Average was up 28.03 points, or 0.13 percent, at 20,978.13, the S&P 500 was up 0.65 points, or 0.03 percent, at 2,385.91 and the Nasdaq Composite was up 5.09 points, or 0.09 percent, at 5,905.14.

Prices on benchmark 10-year Treasuries rose 17/32 to yield 2.533 percent, from 2.595 percent late on Tuesday. Wilders, like Marine Le Pen in France (, has expressed an interest in the Netherlands leaving the European Union, something that caused widespread volatility when the United Kingdom voted to do so in June. The greenback had struggled to make good on that promise until the past fortnight, when a combination of upbeat data and the continued positive momentum of the stock market underwrote a change in Fed policymakers' rhetoric.

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"A less aggressive Fed was clearly the message the markets wanted to hear and indeed acted accordingly", Peter Cardillo, chief market economist at First Standard Financial, wrote in a note.

Dutch Prime Minister Mark Rutte's party won a parliamentary election victory over anti-Islam lawmaker Geert Wilders. Sterling, which may be at the heart of the bank's concern over inflation and would benefit from any rise in interest rates, jumped by a full cent to $1.2361 and by more than half a percent to 86.83 pence per euro.

YIELDS: Treasury yields dipped, dropping once again after the Fed on Wednesday gave a more measured forecast for interest-rate increases than some investors expected. Groundbreaking for new homes rose 3% to a seasonally adjusted 1.288 million units. USA light crude settled 11 cents lower at $48.75 a barrel. The drop pulled the rug out from under the dollar, whichsank to a three-week low of 100.510 against a basket of currencies.

At German lender Commerzbank AG, currency analyst Antje Praefcke also said that "the euro seemed unimpressed" Thursday, but warned that the euro remains vulnerable because "political risks in the eurozone remain high with a view to the French elections".