Press Release

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

May 11, 2023

NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the January – March 2023 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 1.6 percent in the first quarter of 2023. Emerging market currencies accounted for most of the broad dollar move, led by the Mexican peso, which appreciated 8.1 percent against the dollar.  The dollar was driven by evolving market expectations for policy paths across advanced economy central banks, economic data releases, and broader market volatility associated with banking sector stresses in the U.S. and Europe. The magnitude of the net depreciation over the quarter was limited by increased dollar demand amid risk aversion related to the banking sector stresses in March.

The dollar appreciated 1.3 percent against the Japanese yen, while the euro and the British pound appreciated against the dollar 1.3 percent and 2.1 percent, respectively. The Chinese renminbi was little changed against the dollar.

The report was presented by Roberto Perli, 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.

Connor Munsch
(347) 224-1175
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