NY Fed confirms intervention in currency markets for first time in more than a decade

AP / Canadian Press
March 18, 2011

WASHINGTON — The New York Federal Reserve Bank is confirming that it has intervened in currency markets for the first time in more than a decade.

Fed Intervenes; Buys Dollars, Sells Yen In New York Trading

March 18, 2011

NEW YORK (Dow Jones)–The Federal Reserve intervened in the currency market Friday, buying dollars and selling yen as part of a coordinated effort by Group of Seven nations to weaken Japan’s currency.

It was the first coordinated currency intervention since 2000. The intervention began in Tokyo with the Bank of Japan intervening. The Bank of England, Bundesbank, Banque de France and Bank of Italy all intervened during European trading, and the Bank of Canada also intervened.

The initial intervention from the Fed came right at 8 a.m. EDT, the start of the New York trading day. Three U.S. banks familiar with the intervention told Dow Jones Newswires the Fed’s trades early in the New York day totaled about $50 million.

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