Real Emerging Market Economies Dollar Index
RTWEXEMEGS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
106.59
Year-over-Year Change
0.23%
Date Range
1/1/2006 - 7/1/2025
Summary
The Real Emerging Market Economies Dollar Index tracks the relative value of the U.S. dollar against a basket of emerging market currencies, adjusted for inflation. This metric provides critical insights into international currency dynamics and global economic competitiveness.
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 dollar's purchasing power relative to emerging market currencies, reflecting broader trends in international trade and financial markets. Economists use it to assess currency valuation, trade competitiveness, and potential investment opportunities in developing economies.
Methodology
The index is calculated by the Federal Reserve using trade-weighted exchange rates that are adjusted for relative price levels across different emerging market economies.
Historical Context
Policymakers and central banks use this index to inform monetary policy decisions, assess global economic trends, and understand international currency market movements.
Key Facts
- Tracks dollar value against emerging market currencies
- Adjusted for inflation to provide real economic comparison
- Helps assess international economic competitiveness
FAQs
Q: What emerging markets are included in this index?
A: The index includes a trade-weighted basket of emerging market currencies, though the specific composition can vary based on current global economic conditions.
Q: How often is the index updated?
A: The Federal Reserve typically updates the index regularly, with frequency depending on available economic data and market conditions.
Q: Why is this index important for investors?
A: The index provides crucial insights into currency valuations and potential investment opportunities in emerging markets by showing relative economic strengths.
Q: How does inflation impact this index?
A: The index is adjusted for inflation, allowing for a more accurate comparison of real economic value across different emerging market currencies.
Q: What limitations does this index have?
A: The index represents a simplified view of complex currency markets and may not capture all nuanced economic interactions between currencies.
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Related Trends
Citation
U.S. Federal Reserve, Real Emerging Market Economies Dollar Index [RTWEXEMEGS], retrieved from FRED.
Last Checked: 8/1/2025