UK sterling effective exchange rate index
UK sterling effective exchange rate index stood at 85.78 on Oct 16, 2026, according to Bank of England. It is one of the indicators in the Bank Rate and sterling table (Value · Daily), with a complete series running from Jan 2, 1990 to Oct 16, 2026. The complete series with an interactive chart, free to download.
This indicator in the Bank Rate and sterling table
| Indicator | 16-10-2026 | 15-10-2026 | 14-10-2026 | 13-10-2026 | 12-10-2026 | 09-10-2026 | 08-10-2026 | 07-10-2026 | 06-10-2026 | 05-10-2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sterling exchange rates | |||||||||||
| Sterling effective exchange rate index | 85.78 | 85.39 | 85.16 | 85.41 | 85.35 | 85.32 | 85.29 | 85.3 | 85.42 | 85.25 | |
| Sterling effective exchange rate, nominal, narrow basket (BIS) |
Understanding UK sterling effective exchange rate index
External macroeconomic competitiveness of British currency across a basket of primary trading partners is encapsulated within this trade-weighted index, measuring multilateral strength rather than bilateral parities. Unlike single-currency pairs, this composite gauge weights each foreign currency according to its respective share of bilateral trade, providing an aggregate indicator of external purchasing power. Excluded are domestic price indices, capital flows unassociated with trade goods and services, and currencies of nations outside the designated trading basket.
Reading this index requires understanding that base-period rebasing events occur periodically to reflect evolving trade patterns, creating potential level breaks if historical series are spliced improperly. Analysts should note that currency movements against heavily weighted trade partners dominate the index, meaning smaller economies in the basket exert minimal influence despite daily fluctuations. Comparisons with bilateral exchange rates will frequently reveal divergences because the multilateral basket absorbs offsetting shifts across multiple foreign jurisdictions.
Frequently asked questions
- What does a trade-weighted exchange rate index capture that bilateral rates miss?
- It aggregates performance across multiple trading partners simultaneously using trade share weights.
- How are the weights assigned to different currencies in this index?
- Weights reflect the relative importance of each partner in bilateral trade flows with the domestic economy.
- Why might historical comparisons require caution over long horizons?
- Periodic rebasing to update trade weights can introduce level shifts into the historical index series.