NEW YORK – The Federal Reserve and U.S. Treasury 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 2017, the U.S. dollar, as measured by the Federal Reserve Board’s trade-weighted major currencies index, declined 2.7 percent. The depreciation of the dollar during the quarter occurred amid uncertainty regarding the implementation of expansionary U.S. fiscal policy, below-consensus U.S. inflation data, and a number of international developments. The dollar depreciated 3.3 percent against the euro and 2.8 percent against the British pound, but was little changed against the Japanese yen. The dollar also depreciated against most emerging market currencies during the quarter, including by 1.9 percent against the Chinese renminbi, amid improving global economic data and continued low financial market volatility.
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.