Real Advanced Foreign Economies Dollar Index
RTWEXAFEGS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
123.01
Year-over-Year Change
-4.22%
Date Range
1/1/2006 - 7/1/2025
Summary
The Real Advanced Foreign Economies Dollar Index tracks the relative value of the U.S. dollar against currencies of major advanced economies. This index provides crucial insights into international currency valuation and comparative economic performance.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This index measures the trade-weighted exchange rate of the U.S. dollar against currencies of advanced foreign economies, adjusted for inflation differences. Economists use it to understand international purchasing power and competitiveness of the U.S. dollar in global markets.
Methodology
The index is calculated by the Federal Reserve using a weighted average of bilateral exchange rates, adjusted for relative price levels across advanced economies.
Historical Context
Policymakers and central banks use this index to assess international monetary conditions and potential impacts on trade, investment, and economic strategy.
Key Facts
- Measures inflation-adjusted dollar strength against advanced economies
- Includes major developed countries' currencies
- Provides insights into global economic competitiveness
FAQs
Q: What economies are included in this index?
A: The index typically includes currencies from major advanced economies like the Eurozone, Japan, United Kingdom, Canada, and other developed nations.
Q: How does this differ from other dollar indices?
A: Unlike nominal indices, this real-terms index accounts for inflation differences, providing a more nuanced view of currency valuation.
Q: How often is the index updated?
A: The Federal Reserve updates this index regularly, typically on a daily or weekly basis, reflecting current market conditions.
Q: Why is this index important for investors?
A: It helps investors understand the relative strength of the U.S. dollar and potential impacts on international investments and trade.
Q: What are the limitations of this index?
A: The index focuses on advanced economies and may not fully represent emerging market dynamics or global currency trends.
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Related Trends
Citation
U.S. Federal Reserve, Real Advanced Foreign Economies Dollar Index [RTWEXAFEGS], retrieved from FRED.
Last Checked: 8/1/2025