USDX = 50.14348112 × EURUSD(-0.576) × USDJPY(0.136) × GBPUSD(-0.119) × USDCAD(0.091) × USDSEK(0.042) × USDCHF(0.036)
(Brackets (inside is a power, not an arithmetic multiplication)
17 (12 euro countries plus 5 countries that use USDX to mark their national currencies) countries that constitute major international trade with the United States and have well-developed foreign exchange trading markets , market participants are free to decide on quotations. In addition, many currencies that are not included in USDX are quoted in relation to currencies that are included in USDX. USDX is calculated 24 hours a day, 7 days a week.
The foreign currencies and weightings used in USDX are the same as the U.S. Federal Reserve’s USD Trade Weighted Index.
Because USDX is only based on the Forex quote indicator, it may vary due to the use of different data sources.
UUSDX is calculated by reference to the weighted geometric average of the changes in the exchange rates of six currencies against the US dollar in March 1973. USDX measures its value against 100.00. The quote of 105.50 refers to a 5.50% increase in value since March 1973.
March 1973 was chosen as the reference point because it was a historic moment of turning point in the foreign exchange market. From that time on, major trading nations allowed their currencies to float freely against the currencies of other countries. The agreement, reached at the Smithsonian Institution in Washington, represents a victory for free trade ideologues. The Smithsonian agreement replaced the unsuccessful fixed exchange rate system agreed at Bretton Woods in New Hampshire some 25 years ago.
Current USDX levels reflect the dollar's average relative to its 1973 base point. So far, the Dollar Index has risen as high as 165 points and as low as below 80 points. This change characteristic is widely compared to futures stock indexes in terms of volume and rate of change.
Currency Weights
Euro EUR 0.576
Japanese Yen JPY 0.136
British Pound GBP 0.119
Canadian Dollar CAD 0.091
Swedish Krona SEK 0.042
Swiss Franc CHF 0.036
No, there is a weight issue and a base issue.