The Index is a rules-based index composed solely of short USDX futures contracts.
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The USDX began in March 1973 with a value of 100.000 and has since traded as high as the mid-160s.
In mid-April, the USDX stood at 80.19, up somewhat from 75.09 in November, 2009, but still at a relatively low level.
At its current level of 78.691, the USDX is approaching its 33-year low of 70.698, which was reached on March 16, 2008.
By June 19, when China made its policy move, the USDX had backed off a bit, but at 87.04 was still well above April levels.
Since then, the USDX has declined by more than 7 percent to 80.88 as the value of the dollar has tumbled against other major currencies.
The USDX futures contract is designed to replicate the performance of being short the US Dollar against the following currencies: Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.
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With the crisis in Greece and other well-publicized problems in Europe, the dollar once again became a safe haven for currency traders, and the USDX rose by 10 percent to 88.05 on June 7.
The USDX measures the value of the US dollar against a basket of currencies that includes the euro, yen, pound, Canadian dollar, Swiss franc and the Swedish krona exactly the currencies that China is most likely including in its own basket and which are now appreciating as a result.
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