The Theory of Dollar Smile: A Comprehensive Explanation
In the world of finance, various theories and concepts are used to explain different phenomena. One such concept is the theory of the Dollar Smile, which is a term used to describe the shape of the USD index chart that resembles a smile. The Dollar Smile theory is widely discussed and debated by economists and traders alike. In this article, we will provide a comprehensive explanation of the theory of Dollar Smile and how it affects the global economy. The USD X index was designed to assess the value of the US dollar against other relevant currencies worldwide. It is a weighted dollar average against currencies from a broad group of special trading partners in the US. The indicator was created by the US Federal Reserve in 1973, shortly after the dismantling of the Bretton Woods Agreement, during Richard Nixon's presidency. It was updated in 1998 when the euro currency came into effect and replaced five national currencies that had been part of the original index. The USD X replaced