Trade-Weighted U.S. Dollar Index

There is also another kind of dollar index used by the Federal Reserve. It is called the “trade-weighted U.S. dollar index”.

The Fed wanted to create an index that could more accurately reflect the dollar’s value against foreign currencies based on how competitive U.S. goods are compared against other countries.

The main difference between the USDX and the trade-weighted dollar index is the basket of currencies used and their relative weights. The weights are based on annual trade data.

Currencies and Weights

Here is the current weighting of the index:

Euro area	17.191
Canada	15.550
Japan	9.220
Mexico	9.826
China	16.269
United Kingdom	4.500
Taiwan	2.436
Korea	3.520
Singapore	2.057
Hong Kong	1.838
Malaysia	2.124
Brazil	1.987
Switzerland	1.404

Thailand	1.435
Philippines	0.713
Australia	1.189
Indonesia	0.961
India	1.417
Israel	1.056
Saudi Arabia	0.818
Russia	1.152
Sweden	1.025
Argentina	0.485
Venezuela	0.486
Chile	0.841
Colombia	0.499
Total	100

*Weights as of June 17, 2008

For more information on exchange rate indexes for the U.S. dollar, see "Indexes of the Foreign Exchange Value of the Dollar"

Weights for the broad index can be found at http://www.federalreserve.gov/releases/H10/Weights

If you’d like to see historical data, check out http://www.federalreserve.gov/releases/h10/Summary/