National Currency, Monthly

XFORNC01EZM189N • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

651,669,000,000.00

Year-over-Year Change

17.30%

Date Range

12/1/1998 - 10/1/2011

Summary

The National Currency, Monthly trend measures the value of the U.S. dollar relative to a weighted basket of major world currencies. It is a key economic indicator used by policymakers and analysts to assess the strength of the dollar and its impact on trade, inflation, and capital flows.

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 National Currency, Monthly index tracks the average exchange rate between the U.S. dollar and a group of foreign currencies, weighted by their share of U.S. trade. It provides a broad measure of the dollar's performance against major trading partners, which is important for understanding the nation's economic competitiveness and international purchasing power.

Methodology

The data is calculated by the U.S. Federal Reserve based on daily exchange rate quotes.

Historical Context

This trend is closely monitored by the Federal Reserve, Treasury Department, and financial markets as it informs policy decisions and investment strategies.

Key Facts

  • The U.S. dollar index has declined by over 10% since its peak in 2020.
  • A weaker dollar makes U.S. exports more competitive but raises import prices.
  • The Federal Reserve closely tracks the dollar's value when setting monetary policy.

FAQs

Q: What does this economic trend measure?

A: The National Currency, Monthly trend measures the average exchange rate between the U.S. dollar and a basket of major foreign currencies, providing a broad gauge of the dollar's performance.

Q: Why is this trend relevant for users or analysts?

A: The value of the U.S. dollar relative to other currencies is a key indicator of the nation's economic competitiveness and the purchasing power of American consumers and businesses.

Q: How is this data collected or calculated?

A: The data is calculated by the U.S. Federal Reserve based on daily exchange rate quotes for major world currencies.

Q: How is this trend used in economic policy?

A: The National Currency index informs monetary policy decisions by the Federal Reserve and is closely monitored by policymakers and financial markets for its impact on trade, inflation, and capital flows.

Q: Are there update delays or limitations?

A: The National Currency, Monthly data is published with a one-month lag by the Federal Reserve.

Related Trends

Citation

U.S. Federal Reserve, National Currency, Monthly (XFORNC01EZM189N), retrieved from FRED.