Press Release

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

August 10, 2023

NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the April – June 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, appreciated 0.3 percent in the second quarter of 2023. On a trade-weighted basis, the dollar was little changed against advanced market currencies and appreciated 0.8 percent against emerging market currencies, as markets weighed central bank policy developments over the quarter.

In terms of currency-specific developments, the dollar appreciated 5.5 percent against the Chinese renminbi and 8.6 percent against the Japanese yen, reflecting more accommodative monetary policy conditions in these jurisdictions relative to the U.S., as well as weaker-than-expected economic activity in China. In contrast, the dollar depreciated 2.9 percent against the British pound and 0.6 percent against the euro amid expectations for further tightening by the respective central banks. Elsewhere, the dollar depreciated 5.5 percent against the Brazilian real and 5.1 percent against Mexican peso amid positive economic momentum, falling inflation, and high real rates in those two economies.

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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