Press Release

The Federal Reserve and U.S. Treasury Did Not Intervene in FX Markets During the Second Quarter

August 13, 2020

NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the April – June 2020 quarter, the Federal Reserve Bank of New York said today in its quarterly report to the U.S. Congress.

The U.S. dollar, as measured by the Federal Reserve Board's broad trade-weighted dollar index, depreciated 2 percent in the second quarter of 2020, which reversed some of the currency’s sharp appreciation during the first quarter. The depreciation was primarily driven by a reversal in “safe-haven” flows stemming from the improvement in global risk sentiment amid significant monetary and fiscal stimulus globally and the easing of coronavirus-related lockdowns. The dollar depreciated against most currencies, though it appreciated slightly against the Japanese yen.

Exchange rates were less volatile during the second quarter compared the first quarter, as broader financial markets stabilized and liquidity conditions recovered. The U.S. dollar depreciated 3 percent against the Mexican peso, 3.6 percent against the Canadian dollar, and 1.8 percent against the euro. In contrast, it appreciated 0.4 percent against the Japanese yen. 

The report was presented by Lorie Logan, executive vice president of the Federal Reserve Bank of New York and the Federal Open Market Committee’s manager for the System Open Market Account, on behalf of the Treasury and the Federal Reserve System.

The full report is available on the New York Fed's website.

Betsy Bourassa
(212) 720-6885
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