* Asian stocks track Wall Street higher
* Sentiment supported by ultra easy monetary policy
* Eyes on U.S. coronavirus relief package negotiations
* U.S. dollar languishes near two-year lows
By Swati Pandey
SYDNEY, July 30 (Reuters) - Asian stocks were boosted by the
promise of ultra-easy monetary policy globally as the U.S.
Federal Reserve left interest rates near zero to support the
country's virus-battered economy, sending the dollar to a
two-year trough.
All Fed members voted to leave the target range for
short-term rates between 0% and 0.25%, where it has been since
March 15 when the virus was beginning to hit the nation.
The unchanged policy setting together with a pledge the Fed
would use its "full range of tools" if needed boosted risk
appetite overnight with all three Wall Street indexes finishing
firmer. .IXIC .DJI .SPX .N
The confidence extended in Asia where Japan's Nikkei .N225
and South Korea's KOSPI .KS11 were up 0.3% each, Australia's
main index .AXJO climbed 0.7% and Hong Kong's Hang Seng index
.HSI rose 0.2%.
Chinese shares were a shade firmer, leaving MSCI's broadest
index of Asia Pacific shares outside of Japan .MIAPJ0000PUS up
0.4%.
"There is no doubt that the Fed's large presence in markets
has provided risk assets with a backstop to stop a tightening in
financial conditions," said Perpetual analyst Matthew Sherwood.
"But they (Fed) don't have any tools to engineer a recovery,
which means that fiscal policy will need to remain in place to
support household incomes, especially as unemployment could
increase in the months ahead as the true impact of the shock on
the labour market is revealed."
Indeed, negotiations for a new coronavirus relief package in
the United States have become a pressing issue for investors.
U.S. President Donald Trump said on Wednesday that his
administration and Democrats in Congress were still "far apart"
on a new coronavirus relief bill. Policymakers, and investors, are also keeping a close eye on
the coronavirus trajectory with many countries, including the
United States, still reporting record number of COVID-19 cases
and deaths each day. In currencies, the biggest mover was the greenback.
The dollar =USD has been tumbling on expectations the Fed
will continue its ultra loose monetary policy for years to come
and on speculation it will allow inflation to run higher than it
has previously indicated before raising interest rates.
Wednesday's Fed move sent the dollar index crashing to
93.17, the weakest since June 2018. It recouped some of the
losses and was last at 93.398. USD/
The greenback weakness supported the euro at $1.1792 EUR= .
The common currency had hit a two-year high of $1.1807 and is on
course to post its biggest monthly gain in 10 years, having
risen about 5% so far this month.
Sterling also held firm against the dollar at $1.2998
GBP=D4 , just below Wednesday's 4-1/2-month high of $1.3013.
In commodity markets, oil prices rose after a steep drop in
U.S. crude inventories, but another record day for coronavirus
cases worldwide kept gains in check.
Brent crude futures LCOc1 were up 4 cents at $43.79 a
barrel. U.S. crude futures CLc1 inched up 1 cent to $41.28.
O/R
Spot gold XAU= was off 0.4% at $1,962.6 an ounce.
(Editing by Lincoln Feast.)