Press Release

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

August 12, 2021

NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the April – June 2021 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, depreciated 1.1 percent in the second quarter of 2021 amid declining U.S. yields and improved global growth and vaccination prospects. Steady depreciation over most of the quarter was associated with narrowing interest rate differentials between the United States and its trading partners, though net depreciation was limited by a late-quarter increase in short-end U.S. rates that supported the U.S. dollar against both G10 and emerging market currencies. The U.S. dollar depreciated 2.4 percent against the Mexican peso, 1.3 percent against the Canadian dollar, 1.1 percent against the euro, and 0.4 percent against the British pound, while appreciating 0.4 percent against the Japanese yen.

The report was presented by Lorie Logan, 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.

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

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