The Federal Reserve and the U.S. Treasury did not intervene in foreign exchange markets during the first quarter of 2025, according to a report from the Federal Reserve Bank of New York. This information was disclosed in their quarterly report to the U.S. Congress.

During this period, the U.S. dollar experienced a depreciation of 2 percent as measured by the Federal Reserve Board’s broad trade-weighted dollar index. This decline partially offset its significant appreciation from the last quarter of 2024. Several factors contributed to this depreciation, including a narrowing interest rate differential between the United States and other countries, a revised outlook for U.S. growth compared to other regions, particularly Europe, and increased uncertainty due to new U.S. trade policies.

The dollar's value decreased against most currencies from advanced economies and emerging markets during the first quarter. Specifically, it fell by 4.3 percent against the euro and 4.6 percent against the Japanese yen.

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 complete report can be accessed on the New York Fed’s website.

For further inquiries:

Connor Munsch

(347) 224-1175

Connor.Munsch@ny.frb.org