Press Release

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

February 10, 2022

NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the October – December 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 0.6 percent in the fourth quarter of 2021. The move primarily reflected U.S. dollar appreciation against the Japanese yen and the euro as U.S. shorter-dated yields rose relative to yields in the euro area and Japan following the Federal Reserve’s signaling of a faster-than-anticipated withdrawal of policy accommodation. Broad U.S. dollar appreciation was limited by positive risk sentiment late in the quarter as concerns over the economic growth impact of a new COVID-19 variant waned, as well as strength in some emerging market currencies as many emerging market central banks continued to increase their policy rates. The U.S. dollar appreciated 3.4 percent against the Japanese yen and 1.9 percent against the euro, while depreciating 2 percent against the Swiss franc, 1.4 percent against the Chinese renminbi, 0.5 percent against the Mexican peso, and 0.4 percent against the British pound.

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.

Brian Manning
(212) 720-6143
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