Press Release

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

November 09, 2023

NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the July – September 2023 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 2.4 percent in the third quarter of 2023. On a trade-weighted basis, the dollar appreciated broadly against both advanced market currencies and emerging market currencies, supported by upward revisions to the Federal Reserve’s expected policy path relative to those of other major economies and a related widening of interest rate differentials amid rising U.S. Treasury yields, particularly in longer-dated tenors.

In terms of currency-specific developments, the dollar appreciated 3.2 percent against the euro and 4.1 percent against the British pound, amid a deterioration in euro area and U.K. growth outlooks relative to the U.S. Elsewhere, the decline of the relative yield advantage of some emerging market currencies contributed to dollar appreciation, as most emerging market central banks began to reduce policy rates or left policy rates unchanged amid decelerating inflationary pressures.

The report was presented by Roberto Perli, 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.

Connor Munsch
(347) 224-1175
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