Nominal Emerging Market Economies U.S. Dollar Index

Index 2006=100, Annual

TWEXEMEGSANL • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

131.84

Year-over-Year Change

36.59%

Date Range

1/1/2006 - 1/1/2024

Summary

This annual index tracks the weighted average exchange rates of emerging market economies relative to the U.S. dollar, with 2006 set as the base year. It provides critical insights into global currency dynamics and international 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

The index represents a comprehensive measure of emerging market currency movements, reflecting relative economic strengths and monetary policy impacts. Economists use this metric to assess international trade competitiveness and potential currency valuation trends.

Methodology

The index is calculated by the Federal Reserve using a weighted geometric mean of bilateral exchange rates, adjusted for inflation and trade volumes.

Historical Context

Policymakers and central banks utilize this index to inform international monetary strategies and assess global economic interconnectedness.

Key Facts

  • Base year for the index is 2006
  • Covers multiple emerging market economies
  • Provides weighted average exchange rate measurements

FAQs

Q: What does this index specifically measure?

A: The index measures the weighted average exchange rates of emerging market economies relative to the U.S. dollar, normalized to the 2006 baseline.

Q: Why is 2006 chosen as the base year?

A: 2006 was selected as a relatively stable economic year, providing a consistent reference point for comparing currency movements over time.

Q: How often is this index updated?

A: The index is updated annually, providing a comprehensive view of long-term currency trends in emerging markets.

Q: How do economists use this index?

A: Economists analyze this index to understand international trade competitiveness, assess currency valuation, and inform monetary policy decisions.

Q: What are the limitations of this index?

A: The index represents an aggregate measure and may not capture individual country-specific economic nuances or short-term currency fluctuations.

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Citation

U.S. Federal Reserve, Index 2006=100, Annual [TWEXEMEGSANL], retrieved from FRED.

Last Checked: 8/1/2025