Dollar up, stocks down on caution ahead of Fed
LONDON, Aug 10 (Reuters) - The dollar rose and world stocks slipped as investors stayed cautious ahead of likely moves by the U.S. Federal Reserve to warn about and possibly prop up a faltering economic recovery.
"We're seeing some squaring up of short positions ahead of the Fed, and there is some risk-off sentiment as well as Asian stocks closed lower, prompting a sell-off in high yielders such as the Australian dollar," said Christian Lawrence, currency strategist at RBC Capital Markets.
GLOBAL MARKETS: Stocks cut losses, dollar eases after Fed
NEW YORK, Aug 10 (Reuters) - U.S. stocks lost ground but finished the day well off earlier lows and government debt rallied on Tuesday after the Federal Reserve signaled it would act as necessary to preserve the fading economic recovery.
"The Fed is kind of caught in a spot where it isn't sure what to do, so it went halfway," said Michael O'Rourke, chief market strategist at BTIG LLC in New York. "This is an insurance move, one it probably took grudgingly just to meet market expectations."
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