NY Fed inquired into forex trading before manipulation probes started

|By:, SA News Editor

The NY Fed looked at the WM/Reuters fix foreign-exchange benchmark in late 2012, the WSJ reports, just a few months before other global regulators began investigating possible manipulation in the $5.3T-a-day currency markets.

The article didn't seem to indicate whether the Fed discovered anything untoward, although it did say that officials took no public action.

The Bank of England has found itself at the center of the possible scandal, as it was warned in 2008 that the WM/Reuters rate could be manipulated. The BOE has also commissioned an independent investigation into whether its staff acted improperly.