Trade-Weighted Dollar

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 ?
dollar, as measured by the Federal Reserve Boards broad trade-weighted dollar index, depreciated 0.4 percent in the second quarter of 2019 amid multiple cross-currents.
dollar, as measured by the Federal Reserve Board's broad trade-weighted dollar index, depreciated 0.4 percent in the second quarter of 2019 amid multiple cross-currents.
His testimony, along with consequential gains on global stock markets, albeit moderate, have presented mixed signals in terms of trading cues for forex markets, with the narrow trade-weighted Dollar index (DXY) posting three-week lows, while the Yen has traded mixed against various currencies.
Strauss is known for research presentations that include analysis of the manufacturing sector, the automotive sector, the Midwest regional economy, the trade-weighted dollar, business cycles and Federal Reserve payments operations.
As a result, the most widely followed measure of a trade-weighted dollar index depreciated by 10% last year.
* A boost for exports: At the turn of last year, the Federal Reserve's trade-weighted dollar index showed that the U.S.
For our sample excluding the financial crisis (1994-2007), we found that Fed funds surprises had a significant effect on the percent change in the S&P 500 index, but generally had little significant effect on Treasury yields and the trade-weighted dollar. We also studied a decomposition of the yield curve and found that the lack of significant effect on Treasury yields was a result of the offsetting effects of surprises on the term premium and risk-neutral yield.
After adjusting for inflation, the real trade-weighted dollar is up nearly 10 per cent over that same period or eight per cent year on year.
These calculations are based on the Federal Reserve's Broad Trade-Weighted Dollar Index, which includes a larger group of currencies than the USDX and is weighted based on foreign trade.
The Federal Reserve's trade-weighted dollar index has dropped 5.8 per cent in the past year.
From 20012008, the Federal Reserve trade-weighted dollar index declined from 130 to 96 without stemming the trade deficit.
Over the past six years, the value of the trade-weighted dollar has fallen by more than a quarter, as the United States has continued to rack up historically unprecedented trade deficits.