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Calculation of the Dollar Index


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#1 IndexTrader

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Posted 11 November 2009 - 01:28 PM

There was some interest the other day regarding how the dollar index is calculated. According to this:

The US Dollar Index (USDX®) is a geometrically-averaged calculation of six currencies weighted against
the US dollar. The US Dollar Index was created by the US Federal Reserve in 1973. Following the ending
of the 1944 Bretton Woods agreement, which had established a system of fixed exchange rates, the US
Federal Reserve Bank began the calculation of the US Dollar Index to provide an external bilateral tradeweighted
average of the US dollar as it freely floated against global currencies.

https://www.theice.c...r_Index_FAQ.pdf