Dow Jones launches index that uses currency basket to track US dollar

Dow Jones launches index that uses currency basket to track US dollar

Dow Jones deploys novel approach in US dollar index

Dow Jones Indexes has partnered with foreign exchange trader FXCM to launch the FXCM Dollar Index, which tracks changes in the value of the world's most traded currency by combining forex quantities: taking positions in US dollars against a weighted basket of four of the world's most liquid currencies: the euro, sterling, yen and Australian dollar.

"In essence, what forex investors do is trade a thesis (an opinion on whether the US dollar is going up or down) against the dollar," says Jamie Farm