However, the current trade weighted index (TWI) has the majors undervalued by -8% when compared to the mean of the last three decades.

FORBES: EURO Temporarily Rooted But For How Long?

Last week, the market noted that the current trade weighted index (TWI) has the majors undervalued by -8% when compared to the mean of the last three decades.

FORBES: Move up http://i.forbesimg.com t Move down

The central bank also said it would peg its plunging currency at a level of 131 kroner to the euro, or a trade-weighted index of 175, in the inter-bank market.

FORBES: Market Scan

Indeed, the drop in the Australian dollar today is much less alarming than the fall of the mid-1980s, when its trade-weighted index declined 40% in the space of 18 months.

ECONOMIST: Down under

The trade-weighted exchange rate index for the euro dropped from 114 in December 2008 to 96 in August 2012, a fall of 16%.

FORBES: Europe Will Recover As The Euro Falls

For example, the Goldman Sachs monetary-conditions index (based on a weighted average of short-and long-term interest rates and the trade-weighted exchange rate) suggests that America's monetary policy is currently at its tightest since 1989, largely reflecting the strong dollar.

ECONOMIST: The stockmarket economy