ABSTRACT
What Is This Tool? The index reflects the currency units of more than 50 percent of the U.S. purchase, principal trading countries.
How Is It Computed? The index measures the currencies of 10 foreign countries: the United Kingdom, Germany, Japan, Italy, Canada, France, Sweden, Switzerland, Belgium, and The Netherlands. The index is weighted by each currency’s base exchange rate and, then, averaged on a geometric basis. This weighting process indicates relative significance in overseas markets. The base year was 1973.
