The U.S. Dollar Index Formula
This is strictly for the grown and geeky. Here is the formula for calculating USDX:
USDX = 50.14348112 × EUR/USD^(-0.576) × USD/JPY^(0.136) × GBP/USD^(-0.119) × USD/CAD^(0.091) × USD/SEK^(0.042) × USD/CHF^(0.036)
The US Dollar Index (USDX) measures the dollar’s general value relative to a base of 100.000. Huh?!?
Okay. For example, the current reading says 86.212.
This means that the dollar has fallen 13.79% since the start of the index. (86.212 – 100.000).
If the reading was 120.650, it means the dollar’s value has risen 20.65% since the start of the index. (120.650 – 100.00)
