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Dollar & valuation

Where does the dollar sit, and is it stretched on valuation?
Dollar — Broad USD & RX Basket

The dollar two ways: the broad trade-weighted USD index alongside the academic RX 'dollar factor' — an equal-weight basket of G10 currencies against the dollar.

How Broad nominal USD index plus the RX dollar basket (the average G10-vs-USD excess return), as realized levels.Source FRED (BIS, Fed), computed

fx_dollar_rx

How to read Read where the dollar sits now and how it has moved — a present-state level, not a level call.

Valuation — BIS REER vs Own History

Each currency's BIS real effective exchange rate as a percentage deviation from its own history — the standard long-horizon valuation anchor.

How BIS broad real effective exchange rates, expressed as % deviation from each currency's own trailing mean.Source FRED (BIS)

fx_reer_valuation

How to read Report where the real rate sits versus its own history — 'currently rich / cheap vs its own average', a description of the level.

REER deviation is a SLOW-MOVING anchor — the PPP-puzzle half-life is 3–5 years, so a stretched REER is NOT a reversion signal on any tradeable horizon; report where the real rate sits vs its own history, never as a directional call.

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