How the Dollar Index Ignores Your Import Prices

Episode 20 of The Trade Deficit Podcast tackles a blind spot in how we talk about currency and trade. Lucas and Luna break down why the US dollar index—down nearly 3% in the last month—doesn't tell you what your imported goods actually cost. They look at the disconnect between the broad dollar and bilateral exchange rates, especially with China and Mexico. They explain why a weaker dollar against the yuan hasn't made Chinese imports cheaper, and why the dollar index's decline hasn't translated to lower prices at the store. Along the way, they discuss the Fed's preferred inflation gauge hitting 3.3%, and how energy costs from the Iran conflict are muddying the picture. A must-listen if you've ever wondered why 'a weak dollar helps exports' seems broken in 2026. #DollarIndex #ImportPrices #TradeDeficit #ExchangeRates #FedPolicy #Inflation #ChinaTrade #MexicoTrade #USDEUR #USDCNY #EnergyPrices #IranWar #CoreInflation #FederalReserve #Economics #TradePolicy #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo