Trade-Weighted Dollar

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Trade-Weighted Dollar

The average value of the U.S. dollar with respect to a basket of 10 foreign currencies. The Federal Reserve calculates the value of the trade-weighted dollar. When the value increases, American exports become more expensive in foreign countries; when it decreases, they become more affordable. See also: Strong Dollar, Weak Dollar.
References in periodicals archive ?
Since the end of June, the trade weighted dollar index has moved steadily higher, with several catalysts responsible for its dramatic move.
The trade weighted dollar fell 9 percent between 1985, when the Plaza Agreement was negotiated, and 1987, when it was reversed by the Louvre Accord.