World Economy & Currency Policy
Quarterly Report Separates Treasury Yen Purchases From Fed Operations
The New York Fed’s account distinguishes the institutions behind currency transactions and the period in which they occurred.
Different mandates in the same market
The New York Fed reported Thursday that the U.S. Treasury purchased Japanese yen during the third quarter, while the Federal Reserve did not intervene in foreign-exchange markets. Treating the two institutions as a single decision-maker would obscure the distinction in the official account.
A quarter can hide large swings
The report says the broad trade-weighted dollar was little changed over July through September, despite movements within the quarter. It describes dollar declines against currencies including the yen, Korean won and Chinese renminbi being largely offset by gains against the euro and Mexican peso. A stable aggregate does not mean every bilateral exchange rate was stable.
The publication is retrospective
The New York Fed conducts currency transactions under separate directions for the Federal Reserve’s portfolio and for Treasury as fiscal agent. This release describes the third quarter, not a new transaction on November 12 or a promise about future currency policy. It should not be used alone to infer an exchange-rate target or predict the next intervention.
Primary evidence
Reporting note: This independently composed article is based on the linked primary records. Publication and event dates are stated separately. Agency claims are identified as such; an allegation, charge or scheduled event is not presented as a finding, conviction or completed event. Readers should consult the official record for amendments and later action.