The Federal Reserve Bank of New York reported that neither the Federal Reserve nor the U.S. Treasury intervened in foreign exchange markets during the second quarter of 2025. This information was disclosed in the bank's quarterly report to Congress.

During this period, the U.S. dollar declined by 5.6 percent according to the Federal Reserve Board’s broad trade-weighted dollar index, marking a total decrease of 7.5 percent since the start of 2025. Market observers indicated that part of this depreciation was due to downward adjustments in the U.S. economic outlook compared with other countries, following new reciprocal tariffs on U.S. trading partners. Increased uncertainty also led foreign investors to raise their FX hedge ratios on U.S. dollar assets from previously low levels, which contributed further to the currency’s decline.

The dollar weakened against all major advanced-economy currencies and most emerging-market currencies over the quarter, including an 8.2 percent drop against the euro and a 4 percent decline against the Japanese yen.

Roberto Perli, manager for the System Open Market Account at the Federal Open Market Committee, presented the report on behalf of both the Treasury and Federal Reserve System.

The full report can be accessed through the New York Fed’s website.

For more information, contact Connor Munsch at (347) 224-1175 or Connor.Munsch@ny.frb.org.