The dollar remained lower against the euro after the Federal Reserve signaled gains in employment aren’t yet sufficient for policy makers to move closer to reducing stimulus measures. The Fed said the nation’s unemployment rate will hit the central bank’s threshold for raising interest rates sometime in 2015. The Fed under Chairman Ben S. Bernanke will continue buying $85 billion of bond per month, known as quantitative easing, or QE, as it seeks to reduce the unemployment rate that hasn’t fallen below 7 percent since November 2008.

The euro strengthened from a four-month low against the dollar as Cyprus sought alternatives to the European Union plan to help the nation avoid a banking collapse.

Bernanke, starting today, will cut the time between the release of post-meeting statements by the Federal Open Market Committee and his news briefings, giving investors less opportunity to misperceive the Fed’s intent.

In recent presentations, he has pledged to sustain easing, defending monthly bond purchases during congressional testimony last month and warning that “premature removal of accommodation” may weaken the expansion. The Fed is targeting a reduction of the jobless rate to 6.5 percent while keeping inflation to 2.5 percent.

Cyprus hasn’t reached any deal with Russian investors for the sale of Cyprus Popular Bank Plc, government spokesman Christos Stylianides said in a telephone interview in Nicosia today. A preliminary deal to sell the bank to Russian investors was reached, Kathimerini Cyprus reported earlier, without citing anyone.

The pound advanced as Chancellor of the Exchequer George Osborne said the government will keep the Bank of England’s 2 percent target inflation target and allow room for “tradeoffs” in the decision-making process. Sterling pared a drop versus the euro. The government is reviewing the central bank’s remit, including the potential provision of forward guidance on interest rates, Osborne said today in parliament. Government bonds pared a decline.

European stocks climbed, snapping a three-day loss for the benchmark Stoxx Europe 600 Index, as the region’s policy makers weighed options for keeping Cyprus in the euro area.

Luxembourg Finance Minister Luc Frieden called for the 17 euro-area finance ministers to reconvene quickly to put together a new package for Cyprus, after the rejection of the levy threw an earlier bailout plan into limbo.

The European Central Bank, whose Governing Council meets today in Frankfurt, is likely to delay the decision on supplying emergency funds to Cypriot banks, two people familiar with the matter said.

Policy makers don’t need to vote on whether to extend or halt Emergency Liquidity Assistance to Cypriot banks at their two-day meeting that ends tomorrow, the people said.

Kathimerini reported that a preliminary deal has been reached to sell Cyprus Popular Bank to Russian investors, paving the way for a reduction of 4 billion euros in the country’s financing needs. Spokesman Christos Stylianides told Bloomberg News that no deal had been reached.

National benchmark indexes advanced in 15 of the 18 western European markets. The U.K.’s FTSE 100 slipped 0.1 percent, Germany’s DAX climbed 0.7 percent and France’s CAC 40 jumped 1.4 percent.

Deutsche Bank paced a rebound in euro-area lenders, gaining 1.4 percent to 32.44 euros. The shares snapped a three-day decline even as Germany’s largest bank said it raised its litigation reserves 33 percent to 2.4 billion euros.

BNP Paribas SA rose 3.1 percent to 42.24 euros and Banco Bilbao Vizcaya Argentaria SA added 2.4 percent to 7.40 euros. A gauge of the euro-area’s largest banks rallied 2.3 percent after falling 6.8 percent over the previous three sessions.

In the U.K., George Osborne told Parliament in his annual budget that the forecast for economic growth this year was cut by half to 0.6 percent as he lowered corporation tax and set out an updated central-bank remit to aid Britain’s recovery.

Taylor Wimpey Plc paced a rally in homebuilders, climbing 6.1 percent to 90.85 pence, its highest price since May 2008. Persimmon Plc rallied 4 percent to 1,010 pence, the highest since November 2007. Barratt Developments Plc jumped 6.6 percent to 255.6 pence, the highest price since April 2008.

Mediaset SpA gained 5.5 percent to 1.65 euros after Goldman Sachs Group Inc. raised its recommendation for the shares to neutral from sell, citing their recent drop. The stock has tumbled 19 percent since Jan. 18.

Elementis Plc climbed 3.8 percent to 275 pence, its highest price since at least 1988, after JPMorgan Chase & Co. upgraded the chemical company to overweight, equivalent to a buy rating. The brokerage also raised its price estimate by 50 percent to 300 pence.

Dufry AG advanced 3.3 percent to 120.50 Swiss francs as UBS AG raised its recommendation for the operator of duty-free shops to buy from neutral. The bank increased its price target to 138 francs.

West Texas Intermediate oil rose after a government report showed U.S. inventories unexpectedly declined last week and as European policy makers weighed bailout options for Cyprus.

Prices advanced as much as 1.1 percent. The Energy Information Administration, the Energy Department’s statistical arm, said stockpiles fell 1.31 million barrels to 382.7 million in the week ended March 15. U.S. crude production slipped 9,000 barrels a day from the highest level since 1992 to 7.15 million. Stockpiles at Cushing, Oklahoma, the largest U.S. oil-storage hub and the delivery point for New York-traded futures, shrank by 286,000 barrels to 49 million, the EIA reported.

Oil climbed before the report as Luxembourg Finance Minister Luc Frieden called for euro-area finance ministers to assemble a new rescue package for Cyprus. Cyprus yesterday rejected an unprecedented levy on bank deposits, causing futures to tumble.

WTI futures for April delivery, which expire today, rose to $93.13 on the New York Mercantile Exchange.

Brent for May settlement increased 71 cents, or 0.7 percent, to $108.16 a barrel on the London-based ICE Futures Europe exchange.

The four-day rise in gold prices was halted today, as calm returned to the markets, which reduced the appeal of gold as an alternative investment. Previously, the market was concerned about the fact that the Parliament of Cyprus rejected the agreement with the banks. Today, the markets calmed down after the vote in Cyprus, following which it was decided to reject the program of assistance to the euro zone, and traders are preparing the statements of the Federal Reserve System.

According to experts, the market has been satisfied that the impact of the crisis in Cyprus to other countries would be minimal and that a full-scale default in Cyprus and its subsequent exit from the euro zone could be avoided thanks to the support provided by the European Central Bank in the form of unlimited bond-buying program.

No fear was evident in the government bond market. Bond yields in Spain and Italy fell, despite the fact that demand for German bonds Ultrasafe lowered the cost of financing the 10-year German debt to the lowest level at an auction in July 2012.

Meanwhile, Finance Minister Michalis Sarris Cyprus said talks with his Russian counterpart Anton Siluanov on alternative financial support had been "very constructive."

Investors are waiting for the outcome of the meeting of the Federal Reserve and a news conference by its Chairman Ben Bernanke. If the market will see hints of the central bank tightening, pressure on gold skyrocket.

EUR/USD $1.2800, $1.2850, $1.2870, $1.2920, $1.2950, $1.3000

USD/JPY Y94.00, Y95.00, Y95.20, Y95.25, Y95.75, Y96.00, Y95.20

EUR/JPY Y121.00, Y125.00, Y125.20

GBP/USD $1.5050, $1.5100, $1.5200

U.S. stock futures rose as euro-area leaders weighed options for Cyprus and investors awaited the Federal Reserve’s monetary policy decision.

Global Stocks:

Hang Seng 22,256.44 +214.58 +0.97%

Shanghai Composite 2,317.37 +59.94 +2.66%

FTSE  6,450.84 +9.52 +0.15%

CAC 3,819.08 +43.33 +1.15%

DAX 8,006.29 +58.50 +0.74%

Crude oil $92.86 +0.76%

Gold $1607.40 -0.24%

Data

00:00 Japan Bank holiday

07:00 Germany Producer Price Index (MoM) February +0.8% +0.2% -0.1%

07:00 Germany Producer Price Index (YoY) February +1.7% +1.5% +1.2%

09:00 Eurozone Current account, adjusted, bln January 15.9 7.9 13.9

09:30 United Kingdom Bank of England Minutes March

09:30 United Kingdom ILO Unemployment Rate January 7.8% 7.8% 7.8%

09:30 United Kingdom Average Earnings, 3m/y January +1.3% +1.5% +1.2%

09:30 United Kingdom Average earnings ex bonuses, 3 m/y January +1.3% +1.5% +1.2%

09:30 United Kingdom Claimant count February -10.0 -5.2 -1.5

09:30 United Kingdom Claimant Count Rate February 4.7% 4.7% 4.7%

10:00 Switzerland Credit Suisse ZEW Survey (Expectations) March 10.0 2.3

The euro strengthened to a four-month low against the dollar on the background of the fact that the Parliament of Cyprus took the EU rescue program, and President Nikos Anastasiadis began talks with party leaders and the head of the Central Bank this morning in an attempt to reach agreement on alternative proposals that are less damage to private investors.

Cyprus government spokesman confirmed that a special commission. which will develop a "plan B". According to previous reports, can be used by social security funds or resources of the Orthodox Church. It is also possible that the Cypriot banks will be closed until the middle of next week. Meanwhile, Minister of Finance of Cyprus today, visited Moscow for talks on extending the life of the loan of 2.5 billion euros, and possibly additional funding, as Russia wants to protect their deposits with Cyprus banks.

The pound rose sharply against the dollar, after a significant decline in the first half of the session, after the minutes of the meeting of the Bank of England for March 6-7, showed that most politicians have expressed the opinion that the increase in bond purchase program could undermine their authority. Also influenced by the dynamics of trade data provided by the Office of National Statistics, which showed that the number of people applying for unemployment benefits fell in February, but less than expected.

According to the report, the number of applications for unemployment benefits fell last month to 1,500, while reaching the level of 1.54 million, while many economists forecast a drop of 5.2 thousand In addition, it was reported that the level of applications unemployment to employment was 4.7%, unchanged from the previous month, and fully in line with estimates. The data also showed that from November to January, the number of unemployed was 2.52 million, which was in 7000 more than from August to October 2012, marking the first increase since November 2011-January 2012.

The yen fell against the dollar against the yen ahead of the announcement of the results of the two-day Fed meeting. It is expected that the Federal Open Market Committee decides to leave the program redemption of government bonds to support economic growth at the same level. A committee will announce its economic forecasts, and after the meeting, Fed Chairman Ben Bernanke will hold a conference call with reporters

EUR / USD: during the European session, the pair rose to $ 1.2952

GBP / USD: during the European session the pair fell to $ 1.5024, and then rose to $ 1.5156

USD / JPY: during the European session, the pair rose to Y95.50

At 12:30 GMT the UK will provide an annual budget for 2013. At 14:30 U.S. is to publish data on stocks of crude oil from the Energy Department in March. At 15:00 GMT Eurozone release indicator of consumer confidence for March. At 16:30 GMT the U.S. will publish solutions FOMC Interest Rate for March, and will be represented by the accompanying statement FOMC. At 18:00 GMT the U.S. will release an economic forecast from the FOMC. At 18:15 GMT the United States will hold a press conference of the Federal Reserve System. At 21:45 GMT New Zealand will report on changes in GDP for the 4th quarter. At 23:50 GMT, Japan will provide the overall balance of trade in goods and the adjusted balance of foreign trade in February, and will announce the change of volume of exports of goods and changes in the volume of imports of goods for February.

EUR/USD

Offers $1.3040/50, $1.3010, $1.2990-000, $1.2960/70, $1.2940

Bids $1.2840, $1.2825/20, $1.2800

GBP/USD

Offers $1.5250/60, $1.5220/35, $1.5200, $1.5180, $1.5160

Bids  $1.5010/00, $1.4985/80, $1.4965/50, $1.4925/20

AUD/USD

Offers $1.0520/30, $1.0490/00, $1.0455/60, $1.0450, $1.0415/20, $1.0405/10

Bids $1.0355/50, $1.0340/30, $1.0310/00, $1.0285/80

EUR/JPY

Offers Y124.20, Y124.00, Y123.65/70, Y123.45/50

Bids Y122.60/50, Y122.25/20, Y122.10/00, Y121.80, Y121.65/60, Y121.50

USD/JPY

Offers Y96.45/50, Y96.25/30, Y96.00, Y95.70/75, Y95.45/50

Bids Y94.85/80, Y94.50, Y94.40/30

EUR/GBP

Offers stg0.8695/700, stg0.8680/85, stg0.8650, stg0.8595/600, stg0.8580/85

Bids stg0.8505/00, stg0.8450/40, stg0.8410/00

European (SXXP) stocks rose, snapping a three-day loss, as policy makers weighed options for keeping Cyprus in the euro area. U.S. index futures also climbed, while Asian shares excluding Japan were little changed.

The benchmark Stoxx Europe 600 Index rose 0.3 percent to 296.47 at 10:09 a.m. in London after falling 1 percent in the past three days.

Deutsche Bank paced a rebound in euro-area lenders, advancing 2.2 percent to 32.72 euros in Frankfurt. The shares snapped a three-day decline even as Germany’s largest bank said it raised its litigation reserves 33 percent to 2.4 billion euros ($3.1 billion).

Credit Agricole rose 1.9 percent to 6.69 euros and BNP Paribas SA gained 1.3 percent to 41.47 euros. A gauge of the euro-area’s largest banks rallied 1.4 percent after falling 6.8 percent over the previous three days.

Mediaset (MS) jumped 4.4 percent to 1.63 euros. Goldman Sachs Group Inc. raised its recommendation for the shares to neutral from sell, citing their recent drop. Mediaset has lost 19 percent since Jan. 18. The volume in the shares today was 65 percent more than the average of the past three months.

Elementis climbed 3.8 percent to 274.9 pence, its highest price since at least 1988, after JPMorgan Chase & Co. upgraded the chemical company to overweight, a rating similar to buy, from neutral. The brokerage also raised its price estimate for the shares by 50 percent to 300 pence.

Dufry advanced 3.3 percent to 120.60 Swiss francs as UBS AG raised its recommendation for the operator of duty-free shops to buy from neutral. The bank increased its price target to 138 francs.

To date:

FTSE 100 6,452.11 +10.79 +0.17%

CAC 40 3,800.91 +25.16 +0.67%

EUR/USD $1.2800, $1.2850, $1.2870, $1.2920, $1.2950, $1.3000

USD/JPY Y94.00, Y95.00, Y95.20, Y95.25, Y95.75, Y96.00, Y95.20

EUR/JPY Y121.00, Y125.00, Y125.20

GBP/USD $1.5050, $1.5100, $1.5200

Most Asian stocks declined amid concern that Cyprus’s rejection of a bailout plan shows Europe will struggle to contain its debt crisis. The losses were limited as Chinese shares rallied ahead of report that may show manufacturing expanded this month.

Nikkei 225 12,468.23 +247.60 +2.03%

Hang Seng 22,256.44 +214.58 +0.97%

S&P/ASX 200 4,967.35 -20.05 -0.40%

Shanghai Composite 2,317.37 +59.94 +2.66%

Samsung Electronics Co., the world’s largest maker of mobile phones that gets about 19 percent of sales from Europe, slipped 1 percent.

Fortescue Metals Group Ltd., Australia’s third-biggest iron ore producer, slipped 2.3 percent after Goldman Sachs Group Inc. said yesterday that global demand for the metal will slow.

Asian stocks pared gains after a report suggested Cyprus’ parliament won’t approve a tax on bank deposits needed to secure a euro-zone bailout.

Nikkei 225 12,468.23 +247.60 +2.03%

Hang Seng 22,041.86 -41.50 -0.19%

S&P/ASX 200 4,987.4 -28.00 -0.56%

Shanghai Composite 2,257.43 +17.42 +0.78%

Esprit Holdings Ltd., a Hong Kong-based clothier that counts Europe as its No. 1 market, gained 2.2 percent, paring gains of as much as 5.7 percent.

Alacer Gold Corp. advanced 2.3 percent in Sydney as gold traded near its highest in three weeks.

Mainland utilities gained after profit from China Resources Power Holdings Co. beat estimates, raising expectations the group may outperform.

European stocks dropped for a third day as Cypriot President Nicos Anastasiades said lawmakers will probably reject a 5.8 billion-euro ($7.5 billion) bank-deposit levy needed to win a European Union-led bailout.

Cypriot lawmakers began debating how to spread the proposed tax on bank deposits among account holders today. The levy, announced March 16, sparked outrage in the island nation and concern among investors about setting a precedent by breaking the taboo against raiding accounts.

Parliament will probably reject the proposals, Anastasiades told Sweden’s TV4 channel in an interview. Banks and stock markets in Cyprus are closed until Thursday.

Stocks fell even as German investor confidence rose to the highest level in almost three years in March. The ZEW Center for European Economic Research said its index of investor and analyst expectations gained to 48.5 from 48.2 in February. Economists in a Bloomberg survey had predicted 48.1.

National benchmark indexes declined in 15 of the 18 western European markets. The U.K.’s FTSE 100 dropped 0.4 percent, Germany’s DAX fell 0.8 percent and France’s CAC 40 sank 1.2 percent.

Rio Tinto, the world’s second-biggest mining company, retreated 5.4 percent to 3,099.5 pence, the largest drop since November 2011. Goldman Sachs downgraded its rating on the stock to conviction sell from neutral, saying it estimates earnings declines for the commodity producer after cutting iron ore price forecasts for the next three years on oversupply.

ThyssenKrupp plunged 5.6 percent to 17.34 euros, the biggest retreat since March 6, 2012. Germany’s largest steelmaker is preparing to sell more than 1 billion euros of shares to increase its capital, Handelsblatt reported, citing unidentified people close to the company. ThyssenKrupp decline to comment, the newspaper said.

Richemont declined 4.5 percent to 75.95 Swiss francs, its biggest drop since Jan. 21. Goldman Sachs managed the sale of about 7 million Richemont shares for 77 francs each, according to two people familiar with the deal.

ARM Holdings Plc declined 2.8 percent to 895 pence after saying Chief Executive Officer Warren East will retire in July after nearly 12 years in the role. The designer of chips for Apple Inc. iPhones said Simon Segars, currently president of ARM, will take over.

Iliad SA, the French low-cost mobile carrier, surged 6.1 percent to 158.8 euros, the highest since at least 2004. Net income was 186.5 million euros for 2012, beating all but one of the eight analyst estimates.

U.S. stocks fell, sending the Standard & Poor’s 500 Index to its longest slump of the year, as Cypriot lawmakers’ rejection of a bank levy overshadowed data showing growth in new-home construction.

Stocks fell as Cyprus’s parliament rejected an unprecedented levy on bank deposits, dealing a blow to European plans to force savers to shoulder part of the country’s bailout in a standoff that risks renewed tumult in the euro area. Hammered out by euro-area finance chiefs at the weekend, the deal had sought to raise 5.8 billion euros ($7.5 billion) by drawing funds from Cyprus bank accounts in return for 10 billion euros in international aid.

Equities trimmed losses late in the trading day after the European Central Bank reaffirmed its commitment to provide liquidity “as needed within the existing rules.”

The S&P 500 rose earlier as a Commerce Department report showed builders broke ground on 917,000 homes at an annual rate, up 0.8 percent from a revised 910,000 pace in January that was higher than initially estimated. Building permits, a proxy for future construction, advanced 4.6 percent to 946,000, the strongest since June 2008.

The Federal Open Market Committee began a two-day meeting today. The policy makers agreed in December to link record-low interest rates to thresholds for unemployment and inflation so that investors and households know what conditions will prompt the Federal Reserve to consider raising rates.

Cliffs Natural Resources Inc., the biggest U.S. iron ore producer, tumbled 6.6 percent to $20.33. Goldman Sachs trimmed its price forecast on the commodity, citing seaborne expansion projects and increasing production in China.

Juniper Networks Inc. fell 5.3 percent to $19.14. Goldman Sachs downgraded the No. 2 maker of networking gear to sell from neutral, citing competition from Cisco Systems Inc. and Alcatel- Lucent.

At the close:

DJIA 14,455.80 +3.76 0.03%

S&P 500 1,548.34 -3.76 -0.24%

00:00 Japan Bank holiday

The euro slid toward the lowest in almost four months against the dollar after the Cypriot parliament voted down a bank-deposit levy needed to secure a bailout, risking renewed tumult in the currency bloc.

The 17-nation currency fell for a fourth day versus the yen as an official familiar with the matter said European policy makers in Cyprus discussed further capital controls and extending a bank holiday through to the end of the week.

Officials from the European Central Bank, the International Monetary Fund and the European Commission may wait until the outcome of an ECB Governing Council meeting that starts in Frankfurt today before making any decisions, said a European official familiar with the talks, who spoke on condition of anonymity because the discussions are confidential.

The yen and dollar rose against most major peers as investors sought havens on concern Europe’s crisis may slide out of control.

The dollar weakened against the yen before the Federal Reserve ends a two-day meeting today amid speculation policy makers will decide to keep buying bonds to support economic growth. The Federal Open Market Committee will issue a statement and economic forecasts after ending its policy meeting, and Fed Chairman Ben S. Bernanke will brief reporters.

EUR / USD: during the Asian session the pair was trading around the level of $ 1.2870.

GBP / USD: during the Asian session, the pair traded in the range of $ 1.5080-05.

USD / JPY: during the Asian session the pair was trading around the level of Y95.00.

Cyprus developments will continue to provide headline risk and has potential to overshadow this afternoon's FOMC (1800GMT) with Bernanke to follow up with a press conference at 1830GMT. Data interest provided by Germany PPI at 0700GMT ahead of EZ current account at 0900GMT. The Budget will be announced at

1200GMT. Ahead of this BOE Minutes and employment data are due for release at 0930GMT.

Change % Change Last

GOLD 1,611.30 6.70 0.42%

OIL 92.18 -1.56 -1.66%

Change % Change Last

Nikkei 225 12,560.95 +179.76 +1.45%

Hang Seng 22,533.11 -86.07 -0.38%

S&P/ASX 200 5,120.24 +88.02 +1.75%

Shanghai Composite 2,278.4 +8.12 +0.36%

FTSE 100 6,441.32 -16.60 -0.26 %

CAC 40 3,775.75 -49.72 -1.30 %

DAX 7,947.79 -62.91 -0.79 %

DJIA 14,455.80 +3.76 0.03%

S&P 500 1,548.34 -3.76 -0.24%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,2867 -1,61%

GBP/USD $1,5092 -0,09%

USD/CHF Chf0,9473 +0,14%

USD/JPY Y95,13 -0,16%

EUR/JPY Y122,40 -0,87%

GBP/JPY Y143,56 -0,24%

AUD/USD $1,0365 -0,34%

NZD/USD $0,8244 -0,23%

00:00 Japan Bank holiday

07:00 Germany Producer Price Index (MoM) February +0.8% +0.2%

07:00 Germany Producer Price Index (YoY) February +1.7% +1.5%

09:00 Eurozone Current account, adjusted, bln January 13.9 7.9

09:30 United Kingdom Bank of England Minutes March

09:30 United Kingdom ILO Unemployment Rate January 7.8% 7.8%

09:30 United Kingdom Average Earnings, 3m/y January +1.4% +1.5%

09:30 United Kingdom Average earnings ex bonuses, 3 m/y January +1.3% +1.5%

09:30 United Kingdom Claimant count February -12.5 -5.2

09:30 United Kingdom Claimant Count Rate February 4.7% 4.7%

10:00 Switzerland Credit Suisse ZEW Survey (Expectations) March 10.0

12:30 United Kingdom Annual Budget Release 2013

14:30 U.S. Crude Oil Inventories March +2.6

15:00 Eurozone Consumer Confidence March -23.6 -23.2

18:00 U.S. Fed Interest Rate Decision March 0.25% 0.25%

18:00 U.S. FOMC Economic Projections March

18:00 U.S. FOMC Statement March

18:30 U.S. Federal Reserve Press Conference March

21:45 New Zealand GDP q/q Quarter IV +0.2% +0.9%

21:45 New Zealand GDP y/y Quarter IV +2.0% +2.3%