|For immediate release: Aug. 8, 2002
DOLLAR SLIDES FURTHER IN JULY
In July the average monthly value for the trade-weighted dollar index of 15 major currencies tracked by the Federal Reserve Bank of Atlanta fell 1.5 percent, its fifth consecutive monthly decline. Decreases were registered on all subindexes except the Americas measure, which was up 1 percent from June. The European subindex registered the largest decline at 4 percent while the Pacific subindex registered a 2.4 percent decrease. The Pacific-excluding-Japan measure decreased 1 percent for the month. The classic subindex, which is the analogue of the original Atlanta index, was down 1.9 percent in July. The overall index in July was 3.4 percent lower than its year-ago level. On a daily basis, the overall index’s level at the end of July was up 1.2 percent from its reading at the end of June but was 1.6 percent below its level at the end of July 2001.
The Atlanta Fed index is based on 1995–97 bilateral trade weights for 15 currencies. The European subindex includes the European Monetary Union, Switzerland and the United Kingdom. The Pacific subindex includes Australia, China, Hong Kong, Japan, Malaysia, Singapore, South Korea and Taiwan. The Americas subindex includes Brazil, Canada and Mexico. The overall dollar index includes the Saudi Arabian riyal along with the foregoing 14 currencies. The classic subindex includes the European Monetary Union, Switzerland, the United Kingdom, Australia, China, Hong Kong, Japan, Singapore, South Korea, Taiwan, Saudi Arabia and Canada. All figures are indexes and not actual exchange rates. A rise in the index or subindex reflects a strengthening of the dollar against currencies included.
Based on 1995–97 bilateral trade weights for 15 currencies. Technical details of country selection, weighting and index construction are available in the June/July 1986, Summer 1987, September/October 1990 and Third Quarter 1999 issues of the Atlanta Fed’s Economic Review.