Real Broad Dollar Index
RTWEXBGS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
114.57
Year-over-Year Change
-1.94%
Date Range
1/1/2006 - 7/1/2025
Summary
The Real Broad Dollar Index measures the weighted average foreign exchange value of the U.S. dollar against a comprehensive set of currencies. It provides a broad perspective on the dollar's international purchasing power and competitiveness across multiple trading partners.
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 reflects the dollar's value adjusted for inflation, comparing its strength against a wide range of currencies used by major U.S. trading partners. Economists use it to assess the overall international purchasing power and trade competitiveness of the United States.
Methodology
The Federal Reserve calculates the index by weighting bilateral exchange rates against a broad basket of currencies and adjusting for relative price levels.
Historical Context
Policymakers and central bankers use this index to understand international monetary conditions and potential impacts on trade, investment, and economic strategy.
Key Facts
- Covers a broader range of currencies compared to traditional trade-weighted indexes
- Adjusts for inflation to provide a real-terms comparison
- Includes both advanced and emerging market economies
FAQs
Q: What currencies are included in the Real Broad Dollar Index?
A: The index includes currencies from major U.S. trading partners across advanced and emerging economies, providing a comprehensive global perspective.
Q: How often is the Real Broad Dollar Index updated?
A: The Federal Reserve typically updates the index daily, reflecting current market exchange rates and economic conditions.
Q: Why is the 'real' aspect of the index important?
A: The 'real' adjustment accounts for inflation differences, offering a more accurate representation of the dollar's true international purchasing power.
Q: How do changes in this index impact U.S. businesses?
A: Fluctuations can affect export competitiveness, import costs, and the overall economic strategy for companies engaged in international trade.
Q: What are the limitations of this index?
A: While comprehensive, the index cannot capture all nuanced economic interactions and may not reflect specific bilateral trade dynamics.
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Citation
U.S. Federal Reserve, Real Broad Dollar Index [RTWEXBGS], retrieved from FRED.
Last Checked: 8/1/2025