Gnonthgol t1_j5k9un3 wrote on January 23, 2023 at 4:43 PM

We use what is knows as the US Dollar Index, or Dixie for short. This is a weighted average of various other currencies. Euro is the biggest other currency but it also looks at Yen, Pound, Canadian dollars, Krona and Franc.

SoshiLuver OP t1_j5kau9e wrote on January 23, 2023 at 4:50 PM

Thank you for your answer! What about other currencies? Is my assumption correct? When we say that X currency is rising/falling it is always relative to the USD? (In any parts of the world, since I do not live in the US)

tiredstars t1_j5kqj7k wrote on January 23, 2023 at 6:27 PM

In the UK media the pound is usually described against both the dollar and the euro, as those are the two biggest currencies for UK trade, and it's not uncommon for them to go in different directions.

Gnonthgol t1_j5kbg9o wrote on January 23, 2023 at 4:53 PM

Some currencies have their own index that they compare themselves against. This is usually based on the amount of trade with the other countries. But for the most part is is fine to use the dixie and dollar for the other currancies.