Trade Weighted US Dollar Index - Mathematical Formulation - Based On Nominal Exchange Rates

Based On Nominal Exchange Rates

The index is computed as the geometric mean of the bilateral exchange rates of the included currencies. The weight assigned to the value of each currency in the calculation is based on trade data, and is updated annually (the value of the index itself is updated much more frequently than the weightings). The index value at time is given by the formula:



  • and are the values of the index at times and
  • is the number of currencies in the index at time
  • and are the exchange rates of currency at times and
  • is the weight of currency at time
  • and

Read more about this topic:  Trade Weighted US Dollar Index, Mathematical Formulation

Famous quotes containing the words based on, rates, exchange, based and/or nominal:

    Captain, down where I come from we dearly love our whiskey, but we don’t drink with a man unless we respect him.
    James Poe, U.S. screenwriter, and Based On Play. Robert Aldrich. Sergeant Tolliver (Buddy Ebsen)

    [The] elderly and timid single gentleman in Paris ... never drove down the Champs Elysees without expecting an accident, and commonly witnessing one; or found himself in the neighborhood of an official without calculating the chances of a bomb. So long as the rates of progress held good, these bombs would double in force and number every ten years.
    Henry Brooks Adams (1838–1918)

    I can exchange opinion with any neighbouring mind,
    I have as healthy flesh and blood as any rhymer’s had,
    But O! my Heart could bear no more when the upland caught the wind;
    I ran, I ran, from my love’s side because my Heart went mad.
    William Butler Yeats (1865–1939)

    Any reductionist program has to be based on an analysis of what is to be reduced. If the analysis leaves something out, the problem will be falsely posed.
    Thomas Nagel (b. 1938)

    Discourage litigation. Persuade your neighbors to compromise whenever you can. Point out to them how the nominal winner is often a real loser—in fees, expenses, and waste of time. As a peacemaker the lawyer has a superior opportunity of being a good man. There will still be business enough.
    Abraham Lincoln (1809–1865)