Chartered Market Technician (CMT) Exam 2025 – 400 Free Practice Questions to Pass the Exam

The Euro has the highest component weighting in the U.S. Dollar Index, representing a significant part of the index's calculation. The U.S. Dollar Index is designed to measure the value of the U.S. dollar relative to a basket of foreign currencies, and it places the most emphasis on those currencies that are most widely traded and that have the greatest economic interaction with the U.S.

The Euro accounts for approximately 57.6% of the index, making it the most substantial component. This weight reflects the Eurozone's position as the largest trading partner for the United States, which enhances the Euro's influence in measuring the dollar's strength against other currencies. In contrast, the other currencies listed – the Japanese Yen, British Pound, and Canadian Dollar – have much smaller weightings in the index, with the Yen and Pound around 13.6% and 11.9% respectively, while the Canadian Dollar accounts for about 9.1%. Recognizing the weighting helps in understanding market movements and the indexing of the U.S. dollar against major global economies.