Calculating Currency Indexes (or indexing in general..)?

FedericoDyDx · August 15th, 2005, 6:48 am

Hi all,i was wondering how to go by calculationg the dollar-index.I know the formula is 50.1438*the products of all the currencies in the basket raised to their respective weights (a geometric average essentially, eur/usd and gbp/usd are raised to the negative power because of the inverse notation).What i don't undestand is where that 50.1438 comes from. Any help would be greatly appreciated!thanksf

FedericoDyDx · August 15th, 2005, 11:39 pm

Should i post this question under another section of the forum??(the index in question is DXY curncy on Bloomberg, the one you often hear about on cnbc)any input appreciated!thnksf