WThe three bars show the last 3 weeks for this indicator, oldest left to newest right. Bar height reflects each reading relative to the other two — the tallest is the highest of the three, the shortest the lowest.
Historical context: Currently in the 78th percentile historically — elevated vs historical norms.
What this means right now: Dollar strength is elevated — EM economies and dollar-funded borrowers are under pressure. Commodity prices may be suppressed. Watch for EM currency stress and cross-border capital outflows.
Broad USD Index (DTWEXBGS) · Daily · 2006–2026
Grey areas = NBER recessions · Scroll to read · zoom and pan in Expand
Monthly values
Broad USD Index (DTWEXBGS) — the last 12 months
Every month's reading, with the band the heatmap gives it. The chart above shows the same series in full.
Month
Value
Band
Sep 2026
118.2
Concerning reading
Aug 2026
118.6
Concerning reading
Jul 2026
119.7
Concerning reading
Jun 2026
120.9
Concerning reading
May 2026
118.9
Concerning reading
Apr 2026
118.7
Concerning reading
Month-end readings of the same series the chart shows, from dtwexbgs. Values are the current record, not point-in-time: a month that has since been revised shows its revised value.
What is the Broad Dollar Index?
The Nominal Broad US Dollar Index (FRED: DTWEXBGS) measures the trade-weighted value of the US dollar against a basket of 26 currencies representing America's major trading partners. It is published by the Federal Reserve and is indexed to January 2006 = 100. This is distinct from the DXY index (which covers only 6 currencies dominated by the euro) — the broad index includes emerging market currencies like the Chinese renminbi, Mexican peso, and Korean won, making it a more comprehensive measure of dollar strength.
For the purpose of Forward Stress analysis, rising dollar strength is a directional indicator of global financial conditions tightening. Here's why: most global commodities and cross-border loans are denominated in dollars. When the dollar strengthens, dollar-denominated debt becomes more expensive in local currency terms for emerging markets, commodity exporters face revenue compression, and global dollar funding conditions tighten. A persistently strong dollar historically correlates with EM stress, capital outflows, and tightening credit globally.
This is why this indicator is colored directionally (rising = worse) rather than with a two-sided approach. Note that the companion DXY indicator uses a two-sided coloring reflecting the general-purpose view that both extreme weakness and strength are problematic. The DTWEXBGS here uses a stress-oriented lens consistent with its role as a Forward Stress pillar input.
How We Color-Code the Broad Dollar Index
Our heatmap colors each indicator based on historically significant thresholds:
< 93.7 (≤ p25)
Weak dollar — loose global dollar conditions; EM and global growth generally supported
93.7 – 109.9 (p25–median)
Below-median dollar — broadly accommodative global financial conditions
109.9 – 116.8 (median–p75)
Above-median strength — moderate tightening of global dollar conditions
116.8 – 125 (p75–historical stress)
Elevated — dollar strength beginning to stress EM and dollar-funded borrowers
> 125
Extreme dollar strength — only seen ~2022 surge; historically associated with EM crises and global credit stress
Historical Extremes — What Happened Next?
When this indicator reaches extreme levels, history shows consistent patterns:
2022-09-272022 Dollar Surge Peak
128.4
The 2022 Fed hiking cycle triggered the strongest broad dollar rally since the early 2000s. EM currencies collapsed; dollar-denominated debt costs surged for developing economies. UK gilt crisis, Sri Lanka default, and Pakistan IMF bailout all occurred during this period.
2011-07-22Post-GFC Dollar Trough
85.9
The weakest broad dollar reading in the series — Fed QE2 and near-zero rates suppressed the dollar, supporting commodity prices and EM growth. This period coincided with the commodity supercycle peak.
2008-10-27GFC Dollar Flight-to-Safety Surge
102.3
Dollar surged as the GFC created a global scramble for dollar liquidity. Despite the crisis originating in the US, the dollar's reserve currency status drove massive safe-haven demand. EM currencies collapsed; commodity prices crashed.
Investor Checklist — Current Reading
Based on the current Broad Dollar Index reading of 118.2 (Negative):
⚠Dollar strength tightening global conditions — reduce EM and dollar-funded exposure
✓Monitor EM currency stress (EM bond spreads, EM FX reserves)
Frequently Asked Questions
What is the difference between DTWEXBGS and the DXY?
DXY (Dollar Index) is a futures-based index covering 6 currencies: euro (57.6%), Japanese yen (13.6%), British pound (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%), and Swiss franc (3.6%). It is dominated by the euro and does not include any EM currencies. DTWEXBGS is the Federal Reserve's broader trade-weighted index covering 26 currencies, weighted by trade flows rather than financial market conventions. DTWEXBGS is a better measure of the dollar's real-world impact on global trade and emerging markets.
Why is this indicator colored differently from DXY?
DXY on this dashboard uses two-sided coloring (both extreme weakness and strength are negative) reflecting the general-purpose view that the dollar in a healthy range is better than extremes. DTWEXBGS uses monotonic stress-oriented coloring (higher = worse) because its specific role here is as a Forward Stress pillar input, where the question is: is dollar strength tightening global financial conditions? For that purpose, a directional coloring is more analytically useful. Both perspectives are valid — they answer different questions.
Why does the dollar strengthen during financial crises if crises originate in the US?
The dollar is the world's reserve currency and the primary settlement currency for global trade. When financial stress hits globally, institutions worldwide scramble to repay dollar-denominated debts, creating a shortage of dollars relative to demand — this mechanical demand surge strengthens the dollar even when the US is the source of the crisis. This is why the Fed established dollar swap lines with major central banks during both 2008 and 2020 — to provide emergency dollar liquidity to the global financial system.