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.
In the third quarter of 2016, the U.S. dollar, as measured by the Federal Reserve Board’s trade-weighted major currencies index, declined 0.7 percent. Movements in the dollar during the quarter were driven by U.S. economic data, which were mixed, Federal Reserve communications about the outlook for monetary policy and foreign developments, including monetary policy in Japan and developments in the United Kingdom following the June referendum on membership in the European Union (EU). The U.S. dollar depreciated 1.8 percent and 1.1 percent against the Japanese yen and euro, respectively, during the quarter, but appreciated 2.6 percent against the British pound and 0.4 percent against the Chinese renminbi. Emerging market currency performance varied during the third quarter.
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.