Trade-weight value of the dollar

The value of the dollar pegged to, a market basket of selected foreign currencies. The Federal Reserve calculates a trade-weighted value of the dollar based on the weighted-average exchange value of the dollar against the currencies of 10 industrial countries.

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.

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.