Press Release
U.S. Monetary Authorities Do Not Intervene in FX Market during 2Q 1996
July 31, 1997

NEW YORK - The U.S. monetary authorities did not intervene in the foreign exchange markets during the April-June quarter, the Federal Reserve Bank of New York reported to Congress today. It was the seventh consecutive period in which there was no U.S. intervention in the markets.

During the three months that ended June 30, the dollar depreciated 7.3 percent against the Japanese yen, but gained 4.2 percent against the German mark. The contrast between the dollar's performance against the yen and the mark reflected primarily the broad-based strength of the yen and generalized mark weakness, the report noted. On a trade-weighted basis, the dollar appreciated 1.0 percent against the other G-10 nations' currencies.

The report was presented by Peter R. Fisher, executive vice president of the New York Fed and the FOMC's manager for the system open market account, on behalf of the Treasury and the Federal Reserve System.