Just as the Sensex reflects the general state of the Indian Stock Market, the US Dollar Index (USDX) reflects the general assessments of US Dollar against the other major world currencies. The Index is a weighted geometric mean of the dollar's value compared with Euro(EUR), Japanese Yen(JPY),Pound Sterling(GBP), Canadian dollar(CAD), Sweddish Kroner(SEK) and Swiss franc(CHF). The Dollar Index was instituted in March 1973, soon after the dismantling of the Bretton Woods system. Since then the makeup of the "basket" has been altered only once, when several European currencies were replaced by the Euro at the Start of 1999. USDX is traded as a futures cintract inthe Intercontinenetal Exchange(ICE) and is also available in exchange traded funds (ETFs). At its start, the value of the US Dollar Index was 100. It has since traed as high as the mid-160s and as low as 70.698 on March 16,2008, the lowest since its inception. It traded at 80.002 by late Tuesday evening .accroding to Indian Standard Time.
(Extracted from The Economic Times,New Delhi ,Wednesday 24 March 2010)
4 years ago
