@gohawksseattle ,
(a) what country are your CD/ FD held in ? And is it in local currency or in US$ ?
(b) Are you a US person ( citizen / Green Card / Tax Resident )
(c) Was this CD/FD started ( and with local currency ) before you entered the USA ?
Generally as a US person , unless you are a currency dealer / FX investor, your operating currency is US$ and therefore exchange losses to the principle are ignored , while gains are taxed. But here agian depending on the facts and circumstances and treaty conditions things may change.
I will come back once I hear from you
pk
