The Federal Reserve and U.S. Treasury did not intervene in foreign exchange markets during the April – June 2024 quarter, according to a quarterly report released by the Federal Reserve Bank of New York.
The U.S. dollar, as measured by the Federal Reserve Board’s broad trade-weighted dollar index, appreciated by 2.6% in Q2 2024. This appreciation was attributed to U.S. economic data indicating resilient growth and continued tightness in the labor market, along with Federal Reserve communications that led to higher Treasury yields and a modest upward repricing of the Federal Reserve’s policy path. Additionally, an increase in risk premia due to idiosyncratic political risks abroad supported the dollar against specific currencies.
Significantly, the dollar appreciated against the Brazilian real and Mexican peso by 11.6% and 10.6%, respectively. It also gained 6.3% against the Japanese yen and 0.7% against the euro.
The report was presented by Roberto Perli, manager for the System Open Market Account at the Federal Open Market Committee, on behalf of both the Treasury and the Federal Reserve System.
The full report is available on the New York Fed’s website.
Contact:
Connor Munsch
(347) 224-1175
Connor.Munsch@ny.frb.org
