Markets will be taking their cue from the U.S. Federal Reserve today. The Fed is scheduled to make it latest statement on interest rates and monetary policy at this afternoon, and is expected to maintain the 45-year low of 1%.

Until then any gains in the markets are likely to be muted, although Wall Street index futures are pointed to a positive open.

Meanwhile, the U.S. dollar continues to weaken against the Euro and other major currencies. The greenback is trading at an 11-year low against the British pound and a three-year low against the Japanese yen, as currency traders react to what they perceive to be the Fed’s “wait and see” mode.

The Canadian dollar is trading at US76.99¢, off 0.03¢ from Monday’s close. The dollar’s rise was supported by comments from Bank of Canada Governor David Dodge, who predicted an economic growth rate of 4% in the current quarter and the near future.

Asian indexes closed higher, boosted by Monday’s gains on Wall Street. Tokyo’s Nikkei average rose 78.94 points to 10,124.28, recovering about a quarter of Monday’s 3.2% plunge. In Hong Kong, the Hang Seng index rose 216.20 points to 12,393.64.

In Europe at midday, London’s FTSE 100 index is up 0.7%, rising 31.1 points to 4,390.9. Frankfurt’s DAX is up 1.1%. Paris is ahead 0.7%.

On Monday, Toronto’s S&P/TSX composite index opened the week flat, edging up 0.49 point to 7,990.77.

The Dow Jones industrial average jumped 102.59 to 9,965.27 — the best performance since the Dow receded below the 10,000 mark at the end of May 2002, and perhaps marking the start of a Santa Claus rally.

The Nasdaq composite index climbed 11.03 points to 1,948.85. The Standard & Poor’s 500 gained 7.80 to 1,069.30.