United States Trade Weight Dollar Index

The nominal trade weighted index is a weighted average of the foreign exchange value of the U.S. dollar against the currencies of a broad group of major U.S. trading partners.

The real trade weighted index adjusts for the differences in consumer price indexes. In the event of relatively higher inflation a countries currency should depreciate relative to its trading partners.

Indices are set to 100 for 1 December 2019. If the index is greater than 100 this means the US dollar has appreciated relative to its trading partners (1 USD buys more foreign currency), if the index less than 100 this means the US dollar has depreciated (1 USD buys less foreign currency).

Source: Foreign Exchange Rates - H.10