Press Release

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

February 09, 2023

NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the October – December 2022 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 4.7 percent in the fourth quarter of 2022. The depreciation was largely attributed to growing expectations for the Federal Reserve to pursue a slower pace of policy tightening amid decelerating U.S. inflation, an improving global growth outlook that helped support financial market risk sentiment, and narrowing U.S.–advanced economy interest rate differentials in favor of advanced foreign economies concurrent with a relatively greater increase in foreign yields. The dollar depreciated 9.4 percent against the Japanese yen, 8.4 percent against the euro, 7.6 percent against the British pound, and 3.1 percent against the Chinese renminbi.

The report was presented by Patricia Zobel, senior vice president of the Federal Reserve Bank of New York and the Federal Open Market Committee's manager pro tem 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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