The U.S. dollar fell against the euro and other currencies and Wall Street stocks vaulted into positive territory after the U.S. Federal Reserve (Fed) Wednesday signaled a cautious approach to raising interest rates.

The euro gained on the U.S. dollar, rising to $1.0693 from $1.0655 an hour earlier. The U.S. Dollar also fell below 2.58 by 1.2 percent versus Turkish lira following the statement from 2.61 level.

Fifteen minutes after the release of the Fed policy statement at 1800 GMT, the Dow Jones Industrial Average was at 18,000.89, up 151.81 points (0.85 percent).

The broad-based S&P 500 rose 16.94 (0.82 percent) to 2,091.22, while the tech-rich Nasdaq Composite Index advanced 30.11 (0.61 percent) to 4,407.29.

All three indices had been in the red earlier, with the Dow down about 150 points about 20 minutes before the statement's release.

The Fed said US economic growth "has moderated somewhat" compared with its January meeting, when it said activity was "expanding at a solid pace."

The central bank removed a pledge to remain patient on raising interest rates, but made clear it would not rush into a rate hike before midyear.

"Even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run," the statement said.