Question: What is dollar index?

(Posted by: Jimmy Anderson on 2010-02-23 17:56:20)

Can anybody explain me what is dollar index? Is it similar to Stock Index?

Posted by: jeff410 on 2010-02-23, 18:35:05

Its an index of six different currencies against the dollar. The euro, yen, Canadian dollar, British pound, Swedish krona and Swiss franc. Its a weighted average of the exchange rates with the weight for each foreign country equal to its share in trade.

Posted by: Sofia on 2010-02-24, 04:37:34

The U. S. Dollar Index is an index for currency traders, and it consists of a geometric weighted average of a basket of foreign currencies against the United States Dollar. The U.S. Dollar Index, just like stock indexes, provides a general indication of the value of a basket of securities. In this case the basket holds securities that consist of other major world currencies.