# The Federal Reserve and U.S. Treasury Did Not Intervene in FX Markets During the Fourth Quarter - FEDERAL RESERVE BANK of NEW YORK

> The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets in the October-December 2020 quarter, the New York Fed reported to Congress. The broad trade-weighted dollar fell 4.9% in the quarter, its largest quarterly drop since Q2 2009.

- Date: 2021-02-11 · published 2021-02-11T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/48816-the-federal-reserve-and-u-s-treasury-did-not-intervene-in-fx-markets-during-the
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A weaker dollar generally supports dollar-priced commodities and firmer export demand for U.S. grain and oilseeds, while emerging-market currency strength can cut importers' costs.

## Read by commodity

- DXY: bearish ▼
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-07-30 | [Forex markets: Dollar, U.S. Federal Reserve in focus](https://feedsoft.ai/events/52297-forex-markets-dollar-u-s-federal-reserve-in-focus.md) | -0.3% | -0.5% |
| DXY | 2020-03-03 | [Fed and the FX markets: Tainted carry \| articles \| ING THINK](https://feedsoft.ai/events/7170-fed-and-the-fx-markets-tainted-carry-articles-ing-think.md) | +0.3% | +5.5% |
| DXY | 2020-03-02 | [US asset markets: What Fed cuts mean for US Treasuries and the dollar \| articles \| ING THINK](https://feedsoft.ai/events/7151-us-asset-markets-what-fed-cuts-mean-for-us-treasuries-and-the-dollar-articles.md) | -0.8% | +4.0% |
| DXY | 2019-01-30 | [U.S. Dollar Dives after Federal Reserve Moves to the Sidelines](https://feedsoft.ai/events/61290-u-s-dollar-dives-after-federal-reserve-moves-to-the-sidelines.md) | +0.0% | +0.2% |
| DXY | 2017-12-14 | [Aussie dollar rebounds on a US Federal Reserve 'lacking credibility with the market' - ABC News](https://feedsoft.ai/events/67728-aussie-dollar-rebounds-on-a-us-federal-reserve-lacking-credibility-with-the.md) | -0.4% | -2.1% |

## Sources

- newyorkfed.org: https://www.newyorkfed.org/newsevents/news/markets/2021/20210211

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.