How the USDX Currency Basket Changed with the Euro

Summary

The document describes how the currency weights in the U.S. dollar index relate to the adoption of the euro. It lists the current basket weights and explains that, before January 1999, the currencies that later formed the euro area appeared separately: the Deutschemark, French franc, Italian lira, Dutch guilder, and Belgian franc. The other listed currency weights were unchanged across that transition, according to the answer.

It also corrects a point about governance: the answer says the index is administered by the Federal Reserve rather than ICE. This is a concise historical description, not a full account of the index formula, calculation method, or any later administrative changes. It notes that the basket excludes major U.S. trading partners such as China, Brazil, and South Korea, a limitation to keep in mind when interpreting the index as a broad measure of the dollar’s value. The document does not provide market analysis or evidence about how the composition affects trading decisions.

Key ideas

• Before the euro, five predecessor currencies had separate weights in the USDX basket.
• The answer says the other currency weights remained the same through the January 1999 transition.
• The response identifies the Federal Reserve, rather than ICE, as the index administrator.
• The basket omits some major U.S. trading partners, limiting its coverage as a broad trade-weighted measure.

Tags

# USDX before and after EURO


# USDX before and after EURO












I'm googling all over the internet but seems no luck. Just curious, if anyone knows, what did the formula look like for USDX before euro was adopted? And on which day did ICE change the formula ? Jan 1st, 1999 or sometime in 2002? Much appreciated

## Answer by Dimitri Vulis (score 1)

https://quant.stackexchange.com/a/53583

The current weights are:

EUR: 57.6%;

JPY 13.6%;

GBP: 11.9%;

CAD: 9.1%;

SEK: 4.2%;

CHF: 3.6%.

(Observe that this list still does not include some major trading partners of the US such as China, Brazil, and South Korea.)

Since the inception in March 1973 and until January 1999, the weights of the Euro's precursors were:

West German Deutschemark DEM: 20.8%

French Franc FRF: 13.1%

Italian Lira ITL: 9.0%

Dutch Guilder NLG: 8.3%

Belgian Franc BEF: 6.4%

the weights of currencies other than the EUR were the same as now.

By the way, the index is administered by the Fed, not by ICE.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.