The flip side of a strong dollar is weakness in other currencies. The U.S. dollar index is about half weighted in the Euro, and that unit broke down to multiyear lows. However, the Euro has been declining, albeit with volatility, since 2008 (see Chart 3).
US Dollar Index consists of:
- Euro (EUR), 57.6% weight
- Japanese yen (JPY), 13.6% weight
- Pound sterling (GBP), 11.9% weight
- Canadian dollar (CAD), 9.1% weight
- Swedish krona (SEK), 4.2% weight
- Swiss franc (CHF) 3.6% weight