U.S. copper closes 3.2 pct higher before Fed news

NEW YORK Aug 12 (Reuters) - New York copper futures raced up to a strong finish on Wednesday, bolstered by declines in the dollar and rally in U.S. equity markets ahead of the U.S. Federal Reserve's policy statement due out during after hours dealings, traders said.

For detailed report on global copper markets, click on [MET/L]

* Copper for September delivery HGU9 charged up 8.70 cents, or 3.2 percent, to close at $2.8235 a lb on the New York Mercantile Exchange's COMEX division.

* Range high extended up to $2.8345 per lb from a low at $2.7025.

* Copper rally neared, but fell short of, Monday's benchmark September contract 10-month peak at $2.8465.

* COMEX estimated futures volume at a healthy 37,375 lots by 1 a.m. EDT (1700 GMT).

* Copper added to initial gains as the U.S. dollar continued its descent against the euro and U.S. equities - traders.

* U.S. stocks were led higher by tech and homebuilding shares, while investors awaited the Fed's communique this afternoon. [.N]

* Dollar slipped from a 1-1/2 week high against the euro as investors remained cautious ahead of the Fed's policy statement due later Wednesday. [USD/]

* Copper investors were betting on a bit of optimism from the Fed on the state of the U.S. economy - traders.

* Analysts expect the Fed to keep U.S. interest rates steady at near zero at a two-day meeting that concludes around 2:15 p.m. EDT (1815 GMT).

* "The up move is a little perplexing. But you have equities rallying hard ahead of the Fed and you have people expecting a degree of optimism to come out of the Fed's commentary," said Matthew Zeman, head of trading with LaSalle Futures Group in Chicago.

* Earlier, the U.S. International trade deficit widened in June, but by less than forecast. Imports increased for the first time in 11 months, but exports were higher as well. [nCAT002782]

* Analysts said they saw the higher imports of goods in June as a sign that demand may be edging up. [ID:nN1276230]

* London Metal Exchange warehouse stocks jumped 1,225 tonnes to 292,400 tonnes on Wednesday. [LME/STX1]

* COMEX copper warehouse stocks lost 224 short tons to 53,951 short tons as of Tuesday. [CMWSU]

* LME Copper for three-months delivery MCU3 also rallied to finish the Wednesday kerb at $6,190 per tonne, up from $6,039 a tonne at Tuesday's kerb close. (Reporting by Carole Vaporean, Editing by Marguerita Choy)