US dollar index
The US Dollar Index ( USDX ) is a key figure that compares the value of the US dollar using a currency basket of six currencies. The USDX is the geometrically weighted average compared to these currencies. It was introduced in 1973 and is listed on the ICE Futures US futures exchange .
concept
The US Dollar Index (USDX) shows the ratio of six currencies to the US dollar , taking into account the euro with the trading volume from twelve EU countries. These make up 57.6 percent of the index. The other currencies are the Japanese yen (13.6 percent), the British pound (11.9 percent), the Canadian dollar (9.1 percent), the Swedish krona (4.2 percent) and the Swiss franc (3, 6 percent).
The strength or weakness of the US dollar can be read from the course of the US dollar index. A rising index means an appreciation of the US dollar against the currencies in the currency basket , while a falling index means a depreciation. Connections to commodity indices are recognizable. A falling US dollar index means that commodity prices tend to rise. This is especially true for agricultural commodities and the price of oil . Even the gold price correlates with a falling index.
The formula for calculating the US Dollar Index is 50.14348112 multiplied by the product of all components in the currency basket, which are increased to an exponent that is equal to their percentage weighting ((EUR ^ 0.576) * (JPY ^ 0.136) * (GBP ^ 0.119) * (CAD ^ 0.091) * (SEK ^ 0.042) * (CHF ^ 0.036)). All currencies are expressed in units of measure of currency per US dollar.
The Trade Weighted US Dollar Index (also known as "The Broad Index") of the US Federal Reserve (FED) is comparable to the US Dollar Index . Compared to the US Dollar Index, the FED's index measures the value of the US dollar much more accurately, as the weighting of the FED represents the competitiveness of US goods compared to other countries and trading partners.
The arithmetically weighted Euro Currency Index and the trade-weighted Euro Effective Exchange Rate Index of the European Central Bank (ECB) use a calculation method similar to the US Dollar Index .
composition
The tables show the composition of the US dollar index before and after the introduction of the common European currency, the euro. The weighting of currencies against the US dollar is also shown in percent.
From 1973 to 1998
| rank | currency | code | Weighting in% |
|---|---|---|---|
| 1 | German mark | DEM | 20.8 |
| 2 | Japanese yen | JPY | 13.6 |
| 3 | French Franc | FRF | 13.1 |
| 4th | British pound | GBP | 11.9 |
| 5 | Canadian dollar | CAD | 9.1 |
| 6th | Italian lira | ITL | 9.0 |
| 7th | Dutch guilder | NLG | 8.3 |
| 8th | Belgian franc | BEF | 6.4 |
| 9 | Swedish crown | SEK | 4.2 |
| 10 | Swiss franc | CHF | 3.6 |
From 1999
| rank | currency | code | Weighting in% |
|---|---|---|---|
| 1 | Euro | EUR | 57.6 |
| 2 | Japanese yen | JPY | 13.6 |
| 3 | British pound | GBP | 11.9 |
| 4th | Canadian dollar | CAD | 9.1 |
| 5 | Swedish crown | SEK | 4.2 |
| 6th | Swiss franc | CHF | 3.6 |
history
Historical overview
The US Dollar Index was originally published in March 1973, after the end of the Bretton Woods system , by the US Federal Reserve with a base value of 100.00 and was calculated back to 1967. There were ten currencies in the currency basket: German mark , Japanese yen, French franc , British pound, Canadian dollar, Italian lira , Dutch guilder , Belgian franc , Swedish krona and Swiss franc.
On November 20, 1985, the "Financial Instruments Exchange" (FINEX), a division of the futures exchange "New York Cotton Exchange" (NYCE) began trading in futures based on the index and on September 3, 1986 trading in Options on the futures. With the introduction of the euro in 1999, the number of currencies in the currency basket was reduced to today's six.
After the merger of NYCE with the "Coffee, Sugar and Cocoa Exchange" (CSCE) in 2004, the "New York Board of Trade" (NYBOT) published the index. In 2007, the Intercontinental Exchange (ICE) based in Atlanta (USA) took over the NYBOT and changed the name of the exchange to ICE Futures US
In the 1970s, the US dollar index began to move downwards for several years. It fell from 123.82 points in 1969 to a low of 82.07 points on October 30, 1978. With the appreciation of the US dollar against the major currencies, the index rose until the mid-1980s and reached an all-time high on February 25, 1985 of 164.72 points. This corresponds to an increase of 100.7 percent compared to 1978.
By September 2, 1992, the index fell to an all-time low of 78.43 points. The low marks the end of the downward movement. For the next nine years the index was on the way up again. The upward movement ended on July 5, 2001 at 121.47 points. The weakness of the US dollar against almost all world currencies caused the index to fall again in the following years. On April 22, 2008, the US dollar index marked an all-time low of 71.05 points. This corresponds to a decrease of 57.1 percent from the all-time high of 1985.
After an interim high on June 7, 2010 at 88.77 points, the USDX fell on May 4, 2011 to a low of 72.86 points. Due to the strong depreciation of the euro as a result of the extensive bond purchases by the European Central Bank , the USDX reached a value of more than 100 points on March 13, 2015 for the first time in 12 years.
Annual development
The table shows the annual high, low and closing levels of the US dollar index calculated back to 1967.
| year | Peak | Lowest point | Final stand |
|---|---|---|---|
| 1967 | 121.79 | 119.63 | 121.79 |
| 1968 | 122.22 | 121.95 | 121.96 |
| 1969 | 123.82 | 121.74 | 121.74 |
| 1970 | 121.75 | 120.55 | 120.64 |
| 1971 | 120.55 | 111.16 | 111.21 |
| 1972 | 111.27 | 107.76 | 110.14 |
| 1973 | 110.31 | 90.54 | 102.39 |
| 1974 | 109.50 | 96.86 | 97.29 |
| 1975 | 104.81 | 92.82 | 103.51 |
| 1976 | 107.60 | 102.91 | 104.56 |
| 1977 | 106.01 | 96.44 | 96.44 |
| 1978 | 97.87 | 82.07 | 86.50 |
| 1979 | 91.02 | 85.43 | 85.82 |
| 1980 | 94.88 | 84.12 | 90.39 |
| 1981 | 114.88 | 88.95 | 104.69 |
| 1982 | 126.02 | 104.62 | 117.91 |
| 1983 | 134.05 | 115.43 | 131.79 |
| 1984 | 151.47 | 126.18 | 151.47 |
| 1985 | 164.72 | 123.50 | 123.55 |
| 1986 | 125.62 | 104.20 | 104.24 |
| 1987 | 105.02 | 85.55 | 85.66 |
| 1988 | 99.70 | 86.07 | 92.29 |
| 1989 | 106.52 | 91.75 | 93.93 |
| 1990 | 95.75 | 81.46 | 83.89 |
| 1991 | 98.23 | 80.60 | 84.69 |
| 1992 | 94.20 | 78.43 | 93.87 |
| 1993 | 97.69 | 88.92 | 97.63 |
| 1994 | 97.85 | 84.95 | 88.69 |
| 1995 | 89.79 | 80.14 | 84.83 |
| 1996 | 89.20 | 84.51 | 87.86 |
| 1997 | 101.68 | 88.01 | 99.57 |
| 1998 | 102.82 | 90.74 | 93.95 |
| 1999 | 104.60 | 93.12 | 101.42 |
| 2000 | 118.72 | 99.40 | 109.13 |
| 2001 | 121.47 | 108.04 | 117.21 |
| 2002 | 120.80 | 102.26 | 102.26 |
| 2003 | 103.67 | 86.70 | 87.38 |
| 2004 | 92.50 | 80.48 | 81.00 |
| 2005 | 92.53 | 81.11 | 90.96 |
| 2006 | 90.94 | 82.18 | 83.43 |
| 2007 | 85.25 | 74.65 | 76.70 |
| 2008 | 89.25 | 71.05 | 82.15 |
| 2009 | 89.71 | 74.27 | 78.28 |
| 2010 | 88.77 | 75.75 | 79.31 |
| 2011 | 81.64 | 72.86 | 80.56 |
| 2012 | 84.25 | 78.12 | 79.87 |
| 2013 | 84.75 | 78.92 | 80.21 |
| 2014 | 90.33 | 78.91 | 90.28 |
| 2015 | 100.51 | 90.80 | 98.65 |
| 2016 | 103.65 | 91.92 | 102.21 |
| 2017 | 103.82 | 90.99 | 91.83 |
| 2018 | 97.71 | 88.15 | 95.74 |
| 2019 | 99.33 | 94.64 | 96.06 |
Web links
- ICE Futures (English)
- Data at Barchart (English)
- Data on Bloomberg (English)
- Charts at InvestmentTools (English)
Individual evidence
- ↑ a b c ICE Futures US: US Dollar Index Futures FAQ (PDF; 476 kB)
- ^ University of Bath: Risk and the January Effect in the Market for the US Dollar (PDF; 489 kB)
- ↑ Alaron: The US Dollar Index Futures Contract ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
- ↑ About.com: The NYBOT Changes Name to ICE Futures US , September 4, 2007
- ↑ Maoxian: Dollar Index Hits New Low - A Look at the Monthly Chart ( Memento of the original from September 3, 2009 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. , dated February 28, 2008
- ↑ Bloomberg: Euro Falls on Speculation Credit Losses Will Spread to Europe , March 27, 2008
- ↑ NASDAQ: EUR / USD slips below 1.05, as US Dollar Index cracks 100 barrier , from March 13, 2015
- ↑ Stooq: Historical Prices
