The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the January – March 2026 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 1.1 percent in Q1 2026, following a cumulative depreciation of 7.4 percent in 2025. The dollar’s appreciation was driven by a negative terms-of-trade shock for major energy-importing economies amid the U.S.–Iran conflict. In addition, rising U.S. export prices given the U.S.’s position as a net energy exporter contributed to the dollar’s appreciation.
On net, the largest contributors to the dollar’s appreciation on a trade-weighted basis were the euro, Korean won, and Canadian dollar.
This report, presented by Roberto Perli, Federal Reserve Bank of New York System Open Market Account Manager, describes the foreign exchange operations of the New York Fed for the period from January through March 2026. The New York Fed conducts foreign exchange transactions for the System Open Market Account, as directed by the Federal Open Market Committee, and, as directed by the U.S. Treasury, in its capacity as fiscal agent of the United States.
The full report is available on the New York Fed’s website.
