Press Release

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

February 08, 2024

NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the October – December 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, depreciated 3.2 percent in the fourth quarter of 2023. The dollar depreciated against most advanced and emerging market currencies, driven largely by domestic economic data that indicated continued signs of U.S. disinflation and Federal Open Market Committee communications that contributed to a significant decline in nominal U.S. Treasury yields. The subsequent improvement in investor risk sentiment, as reflected in an increase in risk asset prices over the quarter, was also viewed as adding to broad dollar depreciation pressures. Meanwhile, the repricing of the path of monetary policy in the U.S. and the associated improvement in investor risk sentiment were seen as outweighing the impact of policy rate cuts by many emerging market central banks over the period.

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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