US dollar change (Broad Index)
USD 6m
What it is
6-month change in the US dollar broad index (USD Broad Index, FRED DTWEXBGS). Weights the dollar against the main trading partner currencies. Dollar appreciation has major systemic effects.
How to read it
A rapidly appreciating dollar (+5-10% over 6 months) creates global stress: makes USD debt more expensive for emerging markets, pressures the international earnings of US multinationals (40% of S&P 500), and depresses USD-denominated commodities.
Common reference points
- Depreciation — global stimulus< −5%
- Stable−5% to +5%
- Appreciation — EM stress+5 to +10%
- Strong appreciation — systemic shock> +10%
Orders of magnitude, not a rule: the same number does not mean the same thing from one sector to the next.
What it does not tell you
The dollar can appreciate for good reasons (superior US growth, safe haven) or bad (global panic). Always cross with flows and credit spreads to understand the driver.
Other measures — FX
Educational content. Polaris is not a registered investment adviser and makes no recommendation.