The Federal Reserve Bank of New York published its quarterly report to the U.S. Congress on foreign exchange operations, reporting that the Federal Reserve did not intervene in foreign exchange markets during the October to December 2025 quarter, while the U.S. Treasury intervened over the same period. The report also notes that the U.S. dollar depreciated 0.4 percent in Q4 2025, bringing cumulative depreciation in 2025 to 7.2 percent on the Federal Reserve Board’s broad trade-weighted dollar index. The dollar’s Q4 move was driven mainly by depreciation against emerging market currencies, while advanced economy currencies were little changed against the dollar except for the Japanese yen, against which the dollar appreciated significantly. On a bilateral basis, the Mexican peso and Chinese renminbi made the largest contributions to the trade-weighted depreciation; the report links the quarter’s dynamics to a slight narrowing in interest rate differentials between the U.S. and the rest of the world and evolving expectations for the near-term path of Federal Reserve policy. The report, presented by Roberto Perli in his role as System Open Market Account Manager, covers New York Fed foreign exchange operations conducted for the System Open Market Account as directed by the Federal Open Market Committee and, as fiscal agent, transactions directed by the U.S. Treasury.
Federal Reserve Bank of New York 2026-02-12
Federal Reserve Bank of New York reports no Federal Reserve foreign exchange intervention in October to December 2025 while U.S. Treasury intervened
The Federal Reserve Bank of New York's quarterly report to the U.S. Congress revealed no Federal Reserve intervention in foreign exchange markets during Q4 2025, while the U.S. Treasury did intervene. The U.S. dollar depreciated 0.4% in Q4, contributing to a 7.2% cumulative depreciation in 2025, driven by movements against emerging market currencies and influenced by narrowing interest rate differentials and Federal Reserve policy expectations.