Press Release

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

November 12, 2021

NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the July – September 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, appreciated 1.9 percent in the third quarter of 2021, reflecting the widening of real interest rate differentials between the United States and its trading partners, the Federal Reserve’s signaling of a faster-than-anticipated pace of policy normalization, and markdowns to the global growth outlook, which highlighted the dollar’s countercyclical attributes. The U.S. dollar appreciated 3.8 percent against the Australian dollar, 3.5 percent against the Mexican peso, 2.7 percent against the British pound, and 2.4 percent against the euro, and was little changed against the Japanese yen and Chinese renminbi.

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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