Nominal Broad U.S. Dollar Index
Index Jan 2006=100, Monthly
TWEXBGSMTH • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
120.53
Year-over-Year Change
-2.58%
Date Range
1/1/2006 - 7/1/2025
Summary
This index tracks the broad trade-weighted exchange rate of the U.S. dollar against major currencies. It provides crucial insights into the international competitiveness of U.S. goods and services by measuring the dollar's relative strength in global markets.
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
The trade-weighted exchange rate index represents the weighted average value of the U.S. dollar against a basket of major foreign currencies. Economists use this metric to understand how changes in currency valuation impact international trade, investment, and economic competitiveness.
Methodology
The index is calculated by the Federal Reserve using a weighted average of bilateral exchange rates, with weights determined by the volume of trade with each country.
Historical Context
Policymakers and central bankers use this index to assess monetary policy impacts, international trade dynamics, and potential economic adjustments.
Key Facts
- Base period for the index is January 2006, set at 100
- Covers major trading partners of the United States
- Reflects relative strength of the U.S. dollar in international markets
FAQs
Q: What does a rising index value indicate?
A: A rising index value means the U.S. dollar is strengthening against other major currencies, potentially making U.S. exports more expensive and imports cheaper.
Q: How often is this index updated?
A: The trade-weighted exchange rate index is typically updated monthly by the Federal Reserve.
Q: Why is this index important for businesses?
A: The index helps businesses understand currency fluctuations that can impact international trade, pricing strategies, and global competitiveness.
Q: How does this index relate to economic policy?
A: Central banks and policymakers use this index to assess monetary policy effectiveness and potential economic interventions.
Q: What are the limitations of this index?
A: The index represents a broad average and may not capture specific bilateral exchange rate nuances or immediate market fluctuations.
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Indian Rupees to U.S. Dollar Spot Exchange Rate
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Brazilian Reals to U.S. Dollar Spot Exchange Rate
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Citation
U.S. Federal Reserve, Index Jan 2006=100, Monthly [TWEXBGSMTH], retrieved from FRED.
Last Checked: 8/1/2025