U.S. stocks higher as dollar falls

U.S. stocks traded higher around midday Monday, as investors focused on weakness in the U.S. dollar ahead of Wednesday's key Fed meeting.

At midday, the Dow Jones Industrial Average gained 200.08 points, or 1.13 percent, to 17,949.39. The S&P 500 rose 21.69 points, or 1.06 percent, to 2,075.09. The Nasdaq Composite Index was up 43.37 points, or 0.89 percent, to 4,915.13.

Wall Street reacted to currency markets Monday, as the U.S. dollar index fell nearly one percent. The euro rebounded 0.77 percent against the dollar at noon from the previous session, propelling the three indices.

The dollar renewed its rally on Friday, as the euro to dollar rate dropped to the lowest level since January 2003 amid monetary policy divergence and rising concerns over Greece.

Investors have also been cautious ahead of a U.S. Federal Reserve release due on Wednesday, when the central bank is expected to give a hint on the timing of an interest rate hike. The Federal Open Market Committee will hold its March meeting over next two days.

Industrial production increased 0.1 percent in February, after decreasing 0.3 percent in January, the Federal Reserve reported Monday. In February, manufacturing output moved down 0.2 percent, its third consecutive monthly decline.

Stocks in China rose to the highest level in five and a half years on Monday after Premier Li Keqiang said China could turn to policy tools to aid economic growth.

Li said at a press conference after the conclusion of China's annual parliamentary session on Sunday that the government still has policy tools at its disposal to bolster growth despite a slight economic slowdown.

U.S. stocks ended lower Friday, with both the Dow Jones Industrial Average and the S&P 500 turning negative for the year, as economic data came out weaker-than-expected while the dollar regained its strength. Enditem