U.S. Monetary Authorities Did Not Intervene in FX Markets During the Third Quarter
November 12, 2015

NEW YORK—The U.S. monetary authorities did not intervene in the foreign exchange markets during the July—September quarter, the Federal Reserve Bank of New York said today in its quarterly report to the U.S. Congress..

During the third quarter of 2015, the trade-weighted U.S. dollar, as measured by the Federal Reserve Board’s major currencies index, rose 2.6 percent, retracing the depreciation seen in the second quarter.  A broader measure of the dollar that also includes emerging market trade partners rose more than 4 percent.  Downside risks to the global growth outlook, in large part stemming from concerns about growth in emerging market economies amid declines in global equity and commodity prices, led to notable appreciation of the dollar, as well as the yen and euro, against emerging market currencies.  These developments were the predominant drivers of foreign exchange price action during the quarter and led market participants to expect a greater degree of accommodation from developed-market central banks. The dollar depreciated 2.1 percent against the Japanese yen, while the euro–dollar currency pair was little changed.

The report was presented by Simon Potter, executive vice president of the Federal Reserve Bank of New York and the Federal Open Market Committee’s manager for the System Open Market Account, on behalf of the Treasury and the Federal Reserve System.

The full report is available on the New York Fed’s website.

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