The dollar index is a financial instrument currency market Forex. With the dollar index as possible financial transactions and flow forecasting course many currencies.
The dollar index may show us how much it is evaluated at USD. Since the U.S. dollar is one of the most important currencies in the Forex market, the knowledge of this parameter takes the utmost importance.
The dollar index is calculated around the clock for a week. Ready index is calculated from timely data on the transaction, the currency market. Provides data on the index agency “Reuters”, which is based on information from 500 banks located around the world.
The dollar index is computed relative to a basket of six major currencies:
* Japanese Yen
* Canadian dollar
* Euro
* SEK
* British Pound Sterling
* Swiss franc
Current index reflects the results of calculations of the average traffic rates of these currencies against the U.S. dollar. U.S. Federal Reserve uses similar data, so the selection of currencies to the basket due to her choice. Trade-weighted dollar index calculated according to the accepted currencies of these countries, because they form the main foreign trade turnover of the U.S. economy.
From a mathematical point of view, the dollar index is the geometric mean rate changes included in the basket of currencies against the U.S. dollar.
In March 1973, the fixed cost of the dollar, which now is any change of course on the market. In other words, the dollar index is 95 now, will talk about the decline of the dollar in relation to the figure ’73 to 5%, while the index of 140 – an increase of 40%.
The maximum levels of the index, known history of U.S. currency – 165, and a few less than 80.