To: GraceZ who wrote (67898 ) 12/3/2006 12:34:44 AM From: regli Read Replies (1) | Respond to "Maybe you'd like to point out the key differences (or flaws) in the way that the Trade Weighted Index is comprised and maintained by the Atlanta Fed and the construction of the Broad Index because there is an obvious difference in what they show." frbatlanta.org "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." federalreserve.gov "...To capture the evolving nature of international trade patterns, the staff’s current exchange rate indexes allow changes in the component exchange rates and their weights. The currency weights in the dollar indexes are based on annual trade data, vary by year, and have been updated annually since 1998. Although the set of exchange rates in the indexes has remained unchanged so far, the staff will continue to review whether changes in composition or methodology are needed to ensure that the indexes adequately reflect ongoing developments in international trade patterns.
