The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the April – June 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, was little changed on net, with dollar appreciation against advanced economy currencies offsetting depreciation against emerging market currencies. The dollar depreciated early in the second quarter as de-escalation in the U.S.-Iran conflict led to a decline in oil prices and improved market risk sentiment, reversing dynamics observed in the first quarter at the start of the conflict. Market focus later in the second quarter shifted to widening U.S.–advanced foreign economy interest rate differentials in favor of the U.S. driven by stronger-than-expected U.S. economic data and an upward repricing of Federal Reserve policy expectations.
Over the quarter, the dollar’s performance was mixed on a bilateral basis. The dollar appreciated against advanced economy currencies such as the euro, Japanese yen, and Canadian dollar but depreciated against the Chinese renminbi and several high-yielding emerging market currencies popular in carry trade strategies.
This report, presented by Roberto Perli, Federal Reserve Bank of New York, System Open Market Account Manager for the Federal Open Market Committee, describes the foreign exchange operations of the New York Fed for the period from April through June 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.
