The Broad Dollar Index includes the currencies of 26 countries or regions that had a share of at least 0.5% in U.S. non-oil imports or nonagricultural exports in 1997. The Major Currency Index includes the currencies of countries or regions that are traded in liquid financial markets and for which there are both short- and long-term interest rates. Since the beginning of the year, these indexes have behaved alike. After depreciating since the year began, both of them appreciated significantly during a short period that included the starting date of the war in Iraq. From soon after the war’s start until now, both have depreciated after experiencing a run-up around the beginning of April.
Suggested citation: "International Markets," Federal Reserve Bank of Cleveland, Economic Trends, no. 03-05, pp. 08-09, 05.01.2003.