United States Real Effective Exchange Rate

The United States’ real effective exchange rate (REER) stood at 102.74 in 2026, placing it 28th among the 63 economies tracked by the BIS and marginally above Switzerland’s 102.64 and Germany’s 102.99. The series stretches back to 1964, when the REER was 116.90, and reflects a long‑term decline from the all‑time peak of 150.19 recorded in 1985, a period marked by strong dollar appreciation amid high interest rates and a burgeoning trade surplus. The lowest point occurred in 1978 at 81.62, coinciding with the post‑oil‑crisis depreciation of the dollar and expansive fiscal policies. Over the subsequent decades, the REER has oscillated within a relatively narrow band, suggesting a gradual re‑balancing of the United States’ external competitiveness. Future movements will likely hinge on the interaction of monetary policy, trade‑policy adjustments, and global demand shifts, which could either reinforce the modest appreciation trend or trigger a new period of depreciation.