Financial Market: Real Effective Exchange Rates: CPI Based for United States
CCRETT01USM661N • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
116.46
Year-over-Year Change
-1.52%
Date Range
1/1/1970 - 6/1/2025
Summary
The Real Effective Exchange Rate (REER) is an economic indicator that measures the relative strength of a country's currency compared to a basket of other major currencies, adjusted for inflation. It provides insights into a nation's trade competitiveness.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The REER for the United States reflects the purchasing power of the U.S. dollar relative to a group of trading partner currencies. It is a widely used metric for assessing a country's international trade position and external competitiveness.
Methodology
The data is calculated by the Federal Reserve based on exchange rates and relative consumer price indexes.
Historical Context
Policymakers and analysts monitor the REER to gauge the effects of exchange rate movements on trade and the broader economy.
Key Facts
- The REER is calculated using a trade-weighted basket of foreign currencies.
- A rising REER indicates the U.S. dollar has appreciated relative to trading partners.
- The REER provides a more comprehensive measure of exchange rate movements than the nominal exchange rate.
FAQs
Q: What does this economic trend measure?
A: The Real Effective Exchange Rate (REER) measures the relative strength of the U.S. dollar compared to a basket of foreign currencies, adjusted for inflation.
Q: Why is this trend relevant for users or analysts?
A: The REER is a key indicator of a country's trade competitiveness, as it reflects the purchasing power of its currency in international markets.
Q: How is this data collected or calculated?
A: The Federal Reserve calculates the REER based on exchange rates and relative consumer price indexes between the U.S. and its major trading partners.
Q: How is this trend used in economic policy?
A: Policymakers and analysts monitor the REER to assess the effects of exchange rate movements on trade, inflation, and the broader economy, informing policy decisions.
Q: Are there update delays or limitations?
A: The REER data is published monthly with no significant update delays, providing timely information on the U.S. dollar's competitiveness.
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Citation
U.S. Federal Reserve, Financial Market: Real Effective Exchange Rates: CPI Based for United States (CCRETT01USM661N), retrieved from FRED.