How Strong Is the Dollar in 2026? Official Index Data
If you’ve traveled abroad recently, bought imported goods, or watched your grocery bill climb, you’ve felt the dollar’s strength — even if you didn’t know it. The Trade-Weighted Dollar Index is the government’s official scorecard for how the U.S. dollar stacks up against a basket of foreign currencies. As of July 10, 2026, that index sits at 120.50, according to data from FRED (fred.stlouisfed.org), retrieved July 19, 2026. Here’s what that number means, where it’s been, and what it means for your wallet.
What Is the Trade-Weighted Dollar Index?
The Trade-Weighted Dollar Index (FRED series DTWEXBGS) measures the value of the U.S. dollar relative to a broad basket of foreign currencies, weighted by how much trade the United States conducts with each partner country. A rising index means the dollar is buying more foreign currency — it’s getting stronger. A falling index means the dollar is weakening. The index is published by the Federal Reserve and updated daily on business days. One important limitation: this is a relative measure. It tells you how the dollar compares to other currencies, not how far your dollar goes after accounting for domestic inflation. A strong dollar index can coexist with rising prices at home.
Where the Dollar Stands Right Now
The most recent reading, as of July 10, 2026, is 120.50. Looking at the past two weeks of daily data, the index has been remarkably stable, hovering in a tight range between roughly 120.5 and 121.1. There’s no dramatic surge or collapse — just a mild, gradual drift slightly lower over the period.
Recent Daily Index Values
| Date | Index Value |
|---|---|
| June 30, 2026 | 120.92 |
| July 1, 2026 | 121.15 |
| July 2, 2026 | 120.69 |
| July 6, 2026 | 120.84 |
| July 7, 2026 | 120.81 |
| July 8, 2026 | 121.13 |
| July 9, 2026 | 120.75 |
| July 10, 2026 | 120.50 |
The intra-week swings are small — less than one index point separating the high and low. For everyday consumers, that kind of short-term stability is actually good news: it suggests currency markets aren’t in panic mode, and exchange rates at your bank or travel card are unlikely to shift dramatically day to day.
The Longer View: 1, 5, and 10 Years
Short-term stability is one story. The longer-term picture tells another. Compared to one year ago, the dollar is actually slightly weaker. But zoom out to five or ten years, and the dollar is meaningfully stronger than it was.
Historical Comparison
| Period | Date | Index Value | Change from Today | % Change |
|---|---|---|---|---|
| 1 Year Ago | July 31, 2025 | 121.72 | −1.22 | −1.0% |
| 5 Years Ago | July 30, 2021 | 112.67 | +7.83 | +7.0% |
| 10 Years Ago | July 29, 2016 | 111.87 | +8.63 | +7.7% |
The one-year picture shows a modest pullback of 1.0%. The dollar was slightly stronger in mid-2025 than it is today — a gentle softening, not a collapse. But the five- and ten-year comparisons tell a more significant story: the dollar is about 7–8% stronger than it was in either 2021 or 2016. That’s a meaningful shift over time, and one that has real consequences for consumers, travelers, and importers.
What This Means for You
A stronger dollar has both winners and losers. Here’s how the current index — up roughly 7–8% over five and ten years, but down slightly over the past year — affects your personal finances:
- International travel: A stronger dollar stretches further abroad. Compared to five years ago, your vacation budget in Europe, Mexico, or Asia effectively buys about 7% more in local currency terms (all else equal). The slight 1% softening over the past year is barely noticeable at the airport currency counter.
- Imported goods: A strong dollar makes imports cheaper, which can help hold down prices on electronics, clothing, and other goods manufactured overseas. The 7–8% gain over five years has offered some cushion against import price increases, though it doesn’t cancel out domestic inflation.
- Savings and investments: If you hold U.S. dollar savings and the dollar strengthens further, your purchasing power abroad increases. However, a strong dollar can also weigh on the earnings of U.S. companies that sell products overseas, which can affect stock prices in internationally exposed sectors.
- Exports and jobs: A stronger dollar makes American-made goods more expensive for foreign buyers, which can pressure manufacturers and exporters. This is a more indirect effect for most consumers, but it can affect employment in export-dependent industries.
- Loans and debt: The dollar index doesn’t directly affect domestic loan rates, but it does influence Federal Reserve policy thinking. A persistently strong dollar is one factor the Fed watches when assessing the economic outlook.
The 1-Year vs. 5/10-Year Contrast
The most honest read of this data is that the dollar remains historically elevated — roughly 7–8% above where it was in 2016 and 2021 — but has eased very slightly from its recent peak. The 1% dip over the past year is too small to dramatically change travel budgets or import costs on its own. If you’re planning an international trip or a major purchase of imported goods, the structural story (strong dollar over the decade) matters more than the recent 1% softening. Don’t let one year’s small pullback convince you the dollar has lost its edge; at 120.50, it is still well above its five- and ten-year benchmarks.
About the Data
All figures in this article come exclusively from the Federal Reserve Economic Data platform (FRED, fred.stlouisfed.org), series DTWEXBGS — the Trade Weighted U.S. Dollar Index: Broad, Goods. The data was retrieved on July 19, 2026. This series is published by the Board of Governors of the Federal Reserve System and is updated on each U.S. business day. It covers a broad basket of U.S. trading partners, weighted by trade volume, making it more comprehensive than simple two-currency comparisons (like dollar vs. euro alone). Key limitation: the index reflects currency exchange rates only — it does not account for inflation differentials between countries, nor does it measure domestic purchasing power.
Frequently Asked Questions
Is the dollar strong right now?
Yes, in historical terms. At 120.50 as of July 10, 2026, the index is approximately 7.7% above its level from ten years ago (111.87 in July 2016) and 7.0% above five years ago (112.67 in July 2021). It has softened by 1.0% compared to one year ago, but remains elevated by longer-term standards.
Has the dollar been moving much lately?
Not significantly. The eight daily readings from June 30 through July 10, 2026 ranged from a low of 120.50 to a high of 121.15 — a spread of less than one index point. The dollar has been essentially flat in the short term.
Should I exchange currency now for an upcoming trip?
The data shows the dollar is stronger today than it was five or ten years ago, which is favorable for travelers. The slight 1% weakening over the past year is modest. This article cannot predict future movements, but the current index of 120.50 represents a historically solid position for dollar holders traveling abroad.
Does a stronger dollar mean lower prices at stores?
A stronger dollar can reduce the cost of imports, which may moderate prices on foreign-made goods. However, the index measures currency strength only — not domestic inflation or supply-chain costs. The 7–8% gain over five to ten years has provided some offset to import costs, but it is one factor among many that determine what you pay at the register.