NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the April – June 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, depreciated 5.6 percent in Q2 2025, with a cumulative depreciation of 7.5 percent since the beginning of the year. Market contacts reported that the dollar’s depreciation was in part driven by downward revisions to the U.S. growth outlook relative to the rest of the world following the announcement of reciprocal tariffs on U.S. trading partners. Market participants also cited generally heightened uncertainty as driving increases in foreign investors’ FX hedge ratios on U.S. dollar assets from historically low levels, contributing to the broad depreciation of the dollar.
The dollar depreciated against all advanced-economies and most emerging-market currencies in the second quarter. On a bilateral basis, the dollar depreciated 8.2 percent against the euro and 4 percent against the Japanese yen.
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.