This chart shows the contribution of the weighted dollar crashes indicator to the CFSI. This indicator is measured as the ratio of the current value of the trade-weighted US dollar exchange index relative to the maximum over the previous 365 days. It measures flight from the US dollar toward a broad set of foreign currencies. This signals increased demand for liquidity from the domestic financial system, requiring unanticipated and potentially inefficient lending. This indicator measures flight from the U.S. dollar toward a broad set of foreign currencies.
Release: Cleveland Financial Stress Index
Federal Reserve Bank of Cleveland, Contributions to the Cleveland Financial Stress Index: Weighted Dollar Crashes [WDCD678FRBCLE], retrieved from FRED, Federal Reserve Bank of St. Louis https://research.stlouisfed.org/fred2/series/WDCD678FRBCLE/, July 5, 2015.