Falling dollar drives gains for miners after Fed rate pledge

European stocks advanced this afternoon following the US Federal Reserve's interest rate outlook, with miners driving the FTSE 100 to build on earlier gains.

After the Fed pledged to keep interest rates lower for longer, the dollar weakened against the euro, sending metals prices higher. Kazakhstan-based copper miner Kazakhmys was in the top spot in the FTSE's risers after saying it had met all its major production targets in 2011 and expects to maintain similar levels of copper output in 2012. Sector peer Anglo American also rose after it said iron ore production in the final quarter of 2011 increased by 5% from a year earlier to 12.4m tonnes. Vedanta Resources, Xstrata and Rio Tinto were also firmer today. Meanwhile, Royal Bank of ...