October 9, 2014 / 7:01 PM / in 5 years

Fed's Fischer signals dollar rise 'appropriate'

Stanley Fischer, the former chief of the Bank of Israel, testifies before the Senate Banking Committee confirmation hearing on his nomination to be a member and vice chairman of the Federal Reserve Board of Governors on Capitol Hill in Washington March 13, 2014. REUTERS/Yuri Gripas

WASHINGTON (Reuters) - The Federal Reserve’s second in command Stanley Fischer signaled that he was comfortable with the recent strength of the dollar and that the U.S. would not intervene to arrest its gains.

“The exchange rates are changing to reflect what is going on... That is appropriate,” Fischer, vice chair at the Fed, said on Thursday ahead of the annual meetings of the International Monetary Fund and World Bank in Washington.

“We will not intervene to affect the exchange rate.”

The Fed intervenes in markets at the request of the U.S. Treasury and is not in charge of formulating foreign exchange policy.

The dollar has surged against the euro and the yen in recent weeks as growth in the U.S. has solidified and the euro zone and Japan have stagnated.

Reporting by Krista Hughes and Jason Lange; Writing by David Chance; Editing by Andrea Ricci

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