GLOBAL MARKETS-US$ falls, equities gain as Fed calms inflation worries

MSCI's broadest index of world stocks was up 0.15% at 707.26. The STOXX index of leading European shares gained 0.03% to 445.20 after hitting a record high of 447.15. The Dow Jones Industrial Average fell 0.24%, to 34,312.46, the S&P 500 lost 0.21%, to 4,188.13 and the Nasdaq Composite dropped 0.03%, to 13,657.17.

NEW YORK: World equity markets made gains while the U.S. dollar hit new lows against major currencies on Tuesday after Federal Reserve officials reaffirmed a dovish monetary policy stance that eased inflation concerns.

Investors weighed the Fed's soothing words that put to rest tapering worries for the time being and helped to drive the dollar to four-and-a-half-month lows. The benchmark 10-year Treasury note also hit two-week lows and was at 1.56% in afternoon trading, down from 1.608% late on Monday.