THE Dow Jones industrial average reached another record high as Wall Street bet the Federal Reserve would keep US interest rates unchanged at a policy setting meeting next week.

The dollar's slump to its lowest level against the Japanese yen since January also buoyed sentiment.

This fuelled hopes that a cheaper currency would boost the earnings of multi national companies.

Analysts said the market was less concerned that the Fed would raise interest rates again at its next policy setting meeting on May 20th.

The Fed raised interest rates by a quarter point on March 25th in a preemptive move against inflation.

"I think it's still the growing perception that the Fed is not going to raise rates," said Mr John Church, chief investment officer at Glenmede Trust.