|For immediate release: Jan. 8, 2002
DOLLAR RISES AGAIN IN DECEMBERIn December the average monthly value for the trade-weighted dollar index of 15 major currencies tracked by the Federal Reserve Bank of Atlanta rose 0.2 percent. A 1.9 percent gain on the Pacific subindex offset a 1.2 percent decline on the Americas measure. The European subindex showed a modest decline while the Pacific-excluding-Japan measure logged a modest increase. The classic subindex, which is the analogue of the original Atlanta index, was up 0.5 percent. The overall index in December was 3.9 percent higher than its year-ago level. On a daily basis, the overall index’s level at the end of December was 1.3 percent above its reading at the end of November and 5.2 percent stronger than its level at the end of December 2000.
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.