The Federal Reserve and U.S. Treasury refrained from intervening in foreign exchange markets during the first quarter of 2024, according to a quarterly report released by the Federal Reserve Bank of New York. The report, submitted to the U.S. Congress, revealed that the U.S. dollar appreciated by 2.2 percent during this period.
The dollar's value rose against most advanced and emerging market currencies, largely driven by U.S. economic data indicating slower inflation deceleration and stronger growth. Communications from the Federal Open Market Committee also contributed to a significant upward repricing of the Federal Reserve’s policy path.
Specifically, the dollar appreciated by 7.1 percent and 7.3 percent against the Swiss franc and Japanese yen respectively. The dollar also gained value against most major emerging market currencies, with the Mexican peso being an exception.
Roberto Perli, Manager for the System Open Market Account at the Federal Open Market Committee, presented this report on behalf of both the Treasury and the Federal Reserve System. The full report is available on the New York Fed’s website.
For further information, please contact Connor Munsch at (347) 224-1175 or via email at Connor.Munsch@ny.frb.org.
