Get insight into the latest trends and developments in global currency markets with breaking news updates and research reports delivered right to your inbox.
The dollar—the world’s most important currency—is used to denominate the bulk of the world’s trade, reserve assets, and cross-border debt. Although the US runs the world’s largest trade and current account deficits, it does not face external financing constraints - a situation described 60 years ago as an “exorbitant privilege.” The dollar tends to perform well in global markets - not only when US outperformance enhances the attraction of the currency, but also when global economic weakness sparks a scramble to reduce liabilities.
The DXY Dollar Index measures the value of the United States dollar relative to a basket of foreign currencies. It is a weighted geometric mean of the dollar's value relative to the following currencies: EUR (57.6%), JPY (13.6%), GBP (11.9%), CAD (9.1%), SEK (4.2%), CHF (3.6%). The index is widely followed by traders and media as an indicator of the dollar’s strength, but is no longer representative of the dollar’s value in trade-weighted terms - China, Mexico, South Korea, and Brazil have superseded Sweden and Switzerland as important trading partners.
Trade-Weighted Dollar Indices, Updates Daily
The Federal Reserve Nominal Advanced Economy Dollar Index is a weighted average of the foreign exchange value of the US dollar against a group of the country’s most important industrialized trading partners. The Real Broad Dollar Index is a weighted average of the consumer price index-adjusted foreign exchange value of the dollar against the currencies of a broad group of major trading partners.
Year to Date Performance
Nominal Dollar Gain (+) / Loss (-) Against Foreign Currencies, % Year to Date, Updates Daily
Represents the percentage change in the nominal exchange rate relative to the US dollar year to date.
Maximum Absolute Change in DXY Index Level, Calendar 1- or 3-Month Periods, Updates Monthly
Trading Ranges are equivalent to the difference between maximum and minimum DXY index levels – expressed as a percentage of the opening index level – over each calendar one- or three-month period.
Year-To-Date % Change in DXY, Adjusted for Breaks, Updates Daily
Historical Movement compares this year’s exchange rate movement – the thick white line – with movement in previous years – the thinner blue lines – to illustrate the degree to which the rate has moved. Performance is equal to the percentage gain or loss in the exchange rate realized over the number of trading days shown on the horizontal axis.
Net Long (+) or Short (-) US Dollar Futures Position Held by Large Speculators, Billions US Dollars, Updates Weekly
The Commodity Futures Trading Commission's weekly Commitments of Traders report provides a breakdown of the net positions for "non-commercial" (speculative) traders in US futures markets. Market participants follow the data to identify extreme long or short positions in a currency - something that can signal a trend reversal.
Weighted Yield Differential
Foreign-US 10-Year Government Bond Yield Differential, %, Updates Weekl
10-year yield differentials represent the difference between the 10-year US Treasury yield and a gross domestic product-weighted basket of 10-year yields for Australia, Canada, the Euro Area, Japan, Switzerland, and the UK. Positive values indicate higher yields in US dollars relative to other currencies, while negative values imply the opposite.