NEW YORK—The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the July – September 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, depreciated 2.4% in Q3 2024. The dollar’s depreciation was primarily driven by a notable downward repricing of the Federal Reserve’s path of policy and a decline in Treasury yields amid U.S. economic data that was seen as suggestive of a softening in labor market conditions amid continued disinflation. In addition, a sharp unwind of crowded foreign exchange positions and associated volatility in global markets in early August contributed to dollar depreciation.
Notably, the dollar depreciated against most major currencies, including by 10.7% against the Japanese yen. Elsewhere, the dollar appreciated 7.5% against the Mexican peso.
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.
