US Dollar Index Today — Current Trade-Weighted Broad Dollar

What is Broad Dollar Index?

The Trade-Weighted US Dollar Index — Broad, Goods and Services (DTWEXBGS) is a daily index of the foreign-exchange value of the US dollar against the currencies of a broad group of major US trading partners, weighted by their share of US trade. Maintained by the Federal Reserve Board and indexed to January 2006 = 100, DTWEXBGS is the most economically meaningful dollar index because its weights reflect actual trade flows rather than the legacy basket of the popular DXY index (which is dominated by the euro). The broad index includes the euro area, China, Mexico, Canada, Japan, the UK, Korea, Taiwan, India, Brazil, and roughly two dozen other partners. Dollar strength reflects relative growth expectations, relative interest rates, safe-haven flows during global stress, and structural demand for dollar reserves and dollar-denominated debt servicing. A rising index means the dollar is appreciating against US trading partners on average; a falling index means it is depreciating.

Why Broad Dollar Index matters for stocks

A strong dollar reduces the dollar value of foreign earnings for US multinationals (negative for the S&P 500's 40%+ international revenue share — particularly tech and consumer megacaps), tightens global financial conditions, and pressures commodity prices (since most are dollar-denominated). It is especially painful for emerging markets that have borrowed in dollars. A weak dollar reverses all of the above: it lifts S&P 500 reported earnings, supports commodities and materials sectors, and eases pressure on emerging markets. The dollar index is also a key input to the Fed's assessment of financial conditions and indirectly influences policy.

Other US macro indicators