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U.S. monetary authorities did not intervene in FX markets during Q

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Staff writer ▼ | February 12, 2016
The U.S. monetary authorities did not intervene in the foreign exchange markets during the October—December quarter.
Fed New York
Monetary policy   The U.S. dollar appreciated against the Chinese renminbi
The Federal Reserve Bank of New York said that in its quarterly report to the U.S. Congress.

In the fourth quarter of 2015, the U.S. dollar continued to appreciate, with the broad trade-weighted U.S. dollar index rising roughly 2.0 percent, bringing the increase for all of 2015 to more than 10 percent.

The dollar was supported by a number of factors, including increased market expectations for the Federal Open Market Committee to raise the target range for the federal funds rate by the end of the year and further in 2016, continued declines in oil prices, and accommodative monetary policy actions by some foreign central banks.

Notably, increased expectations for the European Central Bank to announce additional easing measures, which were realized in December, were a major factor in the U.S. dollar’s 2.9 percent appreciation against the euro during the period.

The U.S. dollar also appreciated against the Chinese renminbi amid numerous policy actions by Chinese authorities.

In contrast to the broad appreciation of the dollar against other currencies, the U.S. dollar was little changed against the yen.