NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the April – June 2024 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 2.6% in Q2 2024. The dollar’s appreciation was driven by U.S. economic data suggesting resilient growth and continued tightness in the labor market as well as Federal Reserve communications, which contributed to both higher Treasury yields and a modest upward repricing of the Federal Reserve’s path of policy. The dollar was further supported by an increase in risk premia stemming from idiosyncratic political risks abroad that weighed on specific currencies.
Notably, the dollar appreciated against the Brazilian real and Mexican peso by 11.6% and 10.6%, respectively. Elsewhere, the dollar appreciated by 6.3% against the Japanese yen and by 0.7% 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.
