Bloomberg has recently introduced a new U.S. dollar index to compete with the venerable “ICE” U.S. Dollar Index, and the more recent DowJones/FXCM U.S. Dollar Index. The new Bloomberg Index is being referred to as a “dynamic” U.S. dollar index, because it is designed to be “re-balanced” every year, in contrast to other U.S. dollar indexes which are static.
Each U.S. dollar index measures the current value of the U.S. dollar against a basket of foreign currencies. The only significant difference between indexes is (1) the specific foreign currencies included in the various baskets, and (2) the relative weighting of those currencies within their respective baskets.
Here is a summary of those baskets:
[B]1.[/B] “ICE” U.S. Dollar Index (USDX), first introduced in 1973, and last modified in 1999 (with the introduction of the euro):
see U.S. Dollar Index - Wikipedia, the free encyclopedia for more info
Euro (EUR), 57.6% of the basket
Japanese yen (JPY), 13.6%
British pound sterling (GBP), 11.9%
Canadian dollar (CAD), 9.1%
Swedish krona (SEK), 4.2%
Swiss franc (CHF), 3.6%
[B]2.[/B] DowJones/FXCM U.S. Dollar Index (USDOLLAR), introduced in 2011, not modified since then:
see Dow Jones FXCM Dollar Index - Wikipedia, the free encyclopedia for more info
Euro (EUR), 25% of the basket
British pound sterling (GBP), 25%
Japanese yen (JPY), 25%
Australian dollar (AUD), 25%
[B]3.[/B] Bloomberg U.S. Dollar Index (BBDXY), introduced in 2013, designed to be re-balanced yearly:
see Bloomberg U.S. Dollar Index Unveiled | Forex Magnates for more info
Euro (EUR)
Japanese yen (JPY)
Canadian dollar (CAD)
British pound sterling (GBP)
Mexican peso (MXN)
Australian dollar (AUD)
Swiss franc (CHF)
Korean won (KRW)
Chinese renminbi (CNY)
Singapore dollar (SGD)
I haven’t been able to find the current weightings for these 10 currencies; if anyone has that info, please post it here.