Fed Admits Conducting 'Extremely Rare' Dollar-Yen 'Rate Check' On White House Request
Bullish
66.7
The Federal Reserve on Wednesday acknowledged performing a “rate check” on the dollar-yen exchange rate for the White House, hinting at possible active intervention in the currency markets.
The Fed's January meeting minutes show that private market participants had expected the dollar to continue weakening this year. However, stronger-than-anticipated performance in the U.S. economy has cooled those projections. Meanwhile, the dollar has been steadily appreciating against the yen, moving closer to the ¥160 level
Subsequently, the U.S. Treasury asked the Fed’s trading desk to quote a large yen purchase, a strategy that would depreciate the dollar and boost the Japanese currency.
“The dollar had depreciated markedly after reports that the Desk had made requests for indicative quotes, known
The Fed's January meeting minutes show that private market participants had expected the dollar to continue weakening this year. However, stronger-than-anticipated performance in the U.S. economy has cooled those projections. Meanwhile, the dollar has been steadily appreciating against the yen, moving closer to the ¥160 level
Subsequently, the U.S. Treasury asked the Fed’s trading desk to quote a large yen purchase, a strategy that would depreciate the dollar and boost the Japanese currency.
“The dollar had depreciated markedly after reports that the Desk had made requests for indicative quotes, known
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