US Dollar Index - What is the US Dollar Index
Whatisforexrebate bestforexrebate Dollar Index is a comprehensive forexrebatenetworkdicator of the cashback forex rate of the US What is forex rebate in the international foreign exchange market, used to measure the degree of change in the exchange rate of the US dollar against a basket of currencies It measures the strength of the US dollar by calculating the combined rate of change of the US dollar and against a selected basket of currencies, thus indirectly reflecting the competitiveness of US exports and changes in the cost of imports If the US Dollar Index falls, it means that the US dollar is weakening against other major The principle of calculating the dollar index futures is to calculate the overall strength of the dollar in a weighted manner based on the trade settlement volume between major countries and the United States, with 100 as the dividing line between strength and weakness. The currency, which accounted for 57.6% of the weight, so the fluctuations of the euro for the strength of the U.S. dollar index has the greatest impact on the currency index weight (%) euro nbsp;57.6 yen 13.6 pounds 11.9 Canadian dollar 9.1 Swedish krona 4.2 Swiss franc 3.6 U.S. dollar index USDX is referenced to March 1973 The USDX is calculated by reference to the geometric mean weighted value of the change in the exchange rate of six currencies against the U.S. dollar in March 1973, with 100.00 as the benchmark to measure its value March 1973 was chosen as the reference point because it was a historic moment in the turnaround of the foreign exchange market from when major trading nations allowed their currencies to float freely with another countrys currency The agreement was reached at the Smithsonian Institution in Washington, D.C. ( SmithsonianInstitution in Washington, symbolizing the triumph of free trade theorists The Smithsonianagreement replaced the unsuccessful fixed exchange rate agreement reached at BrettonWoods in New Hampshire some 25 years earlier. The current level of the USDX reflects the average value of the US dollar relative to the 1973 benchmark. The characteristics of this change are widely compared to the futures stock index in terms of volume and rate of change.