Nominal Broad U.S. Dollar Index
Index 2006=100, Annual
TWEXBGSANL • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
123.18
Year-over-Year Change
34.42%
Date Range
1/1/2006 - 1/1/2024
Summary
The TWEXBGSANL index tracks the broad trade-weighted exchange rate of the U.S. dollar against major currencies, with 2006 set as the base year. This metric provides crucial insights into the international competitiveness and purchasing power of the U.S. dollar over time.
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 represents a comprehensive measure of the dollar's value relative to a basket of foreign currencies, weighted by their importance in U.S. international trade. Economists use this indicator to assess global economic dynamics, trade competitiveness, and potential inflationary pressures.
Methodology
The index is calculated by the Federal Reserve using a weighted average of bilateral exchange rates, with weights determined by the trading significance of each country.
Historical Context
Policymakers and central bankers use this index to inform monetary policy decisions and understand international economic relationships.
Key Facts
- Base year for the index is 2006
- Covers major international currencies
- Reflects relative strength of U.S. dollar in global markets
FAQs
Q: What does a rising index value indicate?
A: A rising index value suggests the U.S. dollar is strengthening relative to other major currencies. This can impact international trade and investment flows.
Q: How often is this index updated?
A: The Federal Reserve typically updates this annual index, providing a comprehensive view of long-term currency trends and economic performance.
Q: Why is 2006 chosen as the base year?
A: 2006 was selected as a relatively stable economic year, providing a neutral reference point for comparing dollar valuation over time.
Q: How do businesses use this index?
A: Multinational corporations and investors use this index to assess currency risks and make informed decisions about international investments and trade strategies.
Q: What are the limitations of this index?
A: The index focuses on major trading partners and may not fully capture dynamics with smaller economies or emerging markets.
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Citation
U.S. Federal Reserve, Index 2006=100, Annual [TWEXBGSANL], retrieved from FRED.
Last Checked: 8/1/2025