Is the US Dollar overvalued? The US Fed Trade Weighted Real Broad Dollar Index is trading near its 40-year high. The index measures the value of the Dollar against 26 currencies based on its competitiveness with trading partners. The Inflation-Adjusted Broad Dollar Index is ~15% above its long-term average, suggesting the US Dollar is overvalued. However, the US Dollar index has declined -9% year-to-date to its second-lowest level since April 2022. This marks the 5th consecutive monthly decline, its worst streak in almost 5 years. The trade-based US Dollar is still expensive.