NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the July – September 2025 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 0.6 percent in Q3 2025, following a cumulative depreciation of 7.5 percent in the first half of the year. The dollar’s modest appreciation in the third quarter reflected an improvement in U.S. growth expectations, driven by resilient economic data. Market participants also attributed the dollar’s appreciation to a reduction in uncertainty, which had previously been cited as driving increases in foreign investors’ foreign exchange hedge ratios on U.S. dollar assets.
The dollar appreciated against advanced economy currencies, with emerging market currencies little changed against the dollar in the third quarter. On a bilateral basis, the dollar appreciated 2.7 percent against the Japanese yen and 0.5 percent against the euro.
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.
