U.S. Dollar Index (DXY) vs Federal Funds Rate (Target Range Upper Bound)
U.S. Dollar Index (DXY) is currently 103.0 (down -4.10). Federal Funds Rate (Target Range Upper Bound) is currently 4.5% (flat 0.0%).
| Metric | U.S. Dollar Index (DXY) | Federal Funds Rate (Target Range Upper Bound) |
|---|---|---|
| Current value | 103.0 | 4.5% |
| Previous reading | 107.1index | 4.5% |
| Change | -4.10 | 0.0% |
| Trend | down | flat |
| Frequency | Daily | As Announced |
| Source | Federal Reserve | Federal Reserve |
| Last updated | 2026-04-04 | 2026-03-19 |
| Category | trade | rates |
What U.S. Dollar Index (DXY) measures
The U.S. Dollar Index measures the value of the U.S. dollar against a basket of major currencies (euro, yen, pound, Canadian dollar, Swedish krona, Swiss franc). It reflects the dollar's purchasing power in international markets.
The dollar has weakened to 103.0, down from a January peak of 109.4. A weaker dollar is mixed for U.S. businesses: it makes American exports more competitive abroad and boosts the dollar value of foreign earnings (positive for multinationals), but it increases the cost of imported goods and raw materials. For executives at companies with significant international revenue, dollar weakness is generally a tailwind for reported earnings.
What Federal Funds Rate (Target Range Upper Bound) measures
The federal funds rate is the interest rate at which banks lend to each other overnight. Set by the Federal Reserve's FOMC, it is the most important interest rate in the world — influencing everything from mortgage rates to corporate borrowing costs to the value of the dollar.
The Fed has held rates at 4.25-4.50% since December 2024, pausing after three cuts. For executives, this means borrowing costs remain elevated: corporate bond yields, commercial real estate financing, and revolving credit all price off the fed funds rate. The 'higher for longer' stance means capital-intensive projects need higher return hurdles. Companies with strong cash positions have an advantage over those reliant on debt financing.
Frequently asked
U.S. Dollar Index (DXY) is currently 103.0, down -4.10 from the previous reading. Source: Federal Reserve, updated daily.
Federal Funds Rate (Target Range Upper Bound) is currently 4.5%, flat 0.0% from the previous reading. Source: Federal Reserve, updated as announced.
The dollar has weakened to 103.0, down from a January peak of 109.4. A weaker dollar is mixed for U.S. businesses: it makes American exports more competitive abroad and boosts the dollar value of fore The Fed has held rates at 4.25-4.50% since December 2024, pausing after three cuts. For executives, this means borrowing costs remain elevated: corporate bond yields, commercial real estate financing,