In October the average monthly value for the trade-weighted dollar index of 15 major currencies tracked by the Federal Reserve Bank of Atlanta dropped 2.2 percent, its second consecutive monthly decline. The dollar was down on all subindexes, with a 3.8 percent drop on the European subindex leading the way. The classic subindex, which is the analogue of the original Atlanta index, was down 2.9 percent. The overall index in October was 9.5 percent lower than its year-ago level. On a daily basis, the overall index’s level at the end of October was 0.7 percent below its reading at the end of September and was down 8.8 percent from its level at the end of October 2002.
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.
|ATLANTA FED DOLLAR INDEXES: NOVEMBER 2003 UPDATE
(1995 = 100)
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.