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There is also another kind of dollar index used by the Federal Reserve. It is called the “trade-weighted U.S. dollar index“.

The Fed wanted to create an index that could more accurately reflect the dollar’s value against foreign currencies based on how competitive U.S. goods are compared to goods from other countries.

It was formed in 1998 in order to keep up-to-date with U.S. trade.

Trade Weighted US Dollar Index

The Trade-Weighted U.S. Dollar Index

From strongest to weakest, here is the current weighting (in percentage) of the index:

Country Weight(%)
Eurozone 17.056
China 21.892
Canada 11.977
Mexico 12.6
Japan 6.281
United Kingdom 3.679
Korea 3.994
Taiwan 2.317
Singapore 1.694
Brazil 1.808
Malaysia 1.59
Hong Kong 1.378
India 1.975
Switzerland 1.982
Thailand 1.447
Australia 1.157
Russia 1.053
Israel 1.019
Sweden 0.664
Indonesia 0.969
Saudi Arabia 0.791
Chile 0.751
Philippines 0.575
Colombia 0.582
Argentina 0.503
Venezuela 0.258
Total 100

*Weights as of February 12, 2017

The main difference between the USDX and the trade-weighted U.S. dollar index is the basket of currencies used and their relative weights.

The trade-weighted index includes countries from all over the world, including some developing countries.

Given how global trade is developing, this index is probably a better reflection of the dollar’s value across the globe.

The weights are based on annual trade data.

Weights for the broad index can be found at http://www.federalreserve.gov/releases/H10/Weights.

If you’d like to see historical data, check out http://www.federalreserve.gov/releases/h10/Summary/.