It was created by the Federal Reserve and is now used widely by lots of sexy people, like economists and currency analysts.

It is called the “Trade Weighted U.S. Dollar Index“.

You can find it on the Federal Reserve Economic Data (FRED) website here.

Their website is probably one of the most beautiful websites ever made…

Just kidding. It’s a government website.

Beautiful? Like lipstick on a pig.

Useful? Hell yeah. 👍

The trade-weighted US dollar index, also known as the broad index, is a measure of the value of the U.S. dollar relative to other foreign currencies.

It is a trade-weighted index that tries to improve on the older AND privately-owned ICE U.S. Dollar Index (USDX) by using more currencies and updating the weights yearly.

The Fed wanted to create an index that could more accurately reflect the dollar’s value against foreign currencies based on how competitive U.S. goods are compared to goods from other countries.

It was formed in 1998 in order to keep up-to-date with U.S. trade.