Trade-weighted dollar index

Nov 15, 2016

The trade-weighted dollar index was introduced in 1998 for two primary reasons. The first was the introduction of the euro, which eliminated several of the currencies in the standard dollar index; the second was to keep pace with new developments in US trade.

In the standard US dollar index, a significant weight is given to the euro. To more accurately reflect the strength of the dollar relative to other world currencies, the Federal Reserve created the trade-weighted US dollar index, which includes a bigger collection of currencies than the US dollar index. The regions included are:

Europe (euro countries)
Canada
Japan
Mexico
China
United Kingdom
Taiwan
Korea
Singapore
Hong Kong
Malaysia
Brazil
Switzerland
Thailand
Philippines
Australia
Indonesia
India
Israel
Saudi Arabia
Russia
Sweden
Argentina
Venezuela
Chile
Colombia

fred.stlouisfed.org/series/DTWEXM
en.wikipedia.org/wiki/Trade-weighted_US_dollar_index

Dec 22, 2016

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