Fed Intervention Lifts Volatility In January Most Banks Post Solid FX Gains, Funds Don't

BANKS

The Fed's input helped bolster volatility in January, which helped lift currency trading gains in turn, bank officials surveyed report, but activity has been far more muted this month. "It was as if someone turned on a light switch January 2 and turned it off again February 1," one New York-based trader says of foreign exchange activity.

Other sources say that might be overstating the case a bit, but early indications suggest that most banks and nonbank financial institutions were able to gen