The US Dollar has risen broadly against major currencies. This is especially true for the Euro and the Swiss Franc. A measure of its success can be seen in the US Dollar Index (DX) which looks at the value of the US Dollar against a basket of foreign currencies.
Wikipedia gives a very good explanation of the index.
It is a weighted geometric mean of the dollar’s value compared only with
- Euro (EUR), 57.6% weight
- Japanese yen (JPY), 13.6% weight
- Pound sterling (GBP), 11.9% weight
- Canadian dollar (CAD), 9.1% weight
- Swedish krona (SEK), 4.2% weight
- Swiss franc (CHF) 3.6% weight.
2 aspects are notable:
- It was started in March 1973.
- It has only been changed once in 1999.
This makes the index an important tool in the trader’s toolbox. The index can also be traded. A chart of the dollar index can be found here at Ino.com
US Dollar Index: DX
