Press Release

The Federal Reserve and U.S. Treasury Did Not Intervene in FX Markets During the Third Quarter

November 14, 2019

NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the July – September 2019 quarter, the Federal Reserve Bank of New York said today in its quarterly report to the U.S. Congress.

The U.S. dollar, as measured by the Federal Reserve Board's broad trade-weighted dollar index, appreciated 3.1 percent in the third quarter of 2019, strengthening notably against most major and emerging market currencies. The main factors supporting the dollar over the quarter were the continued outperformance of the U.S. economy relative to most other jurisdictions, and safe-haven flows amid investor uncertainty stemming from the U.S.-China trade conflict. The dollar was also reportedly supported by the higher level of U.S. yields relative to other major economies, even as interest rate differentials narrowed. Among major currencies, the dollar appreciated 4.4 percent against the euro, 4.1 percent against the onshore Chinese renminbi, and 3.3 percent against the British pound. It was little changed against the Japanese yen.

The report was presented by Lorie Logan, senior vice president of the Federal Reserve Bank of New York and the Federal Open Market Committee’s manager pro tem 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.

Contact
Brian Manning
(212) 720-6143
brian.manning@ny.frb.org