Bloomberg, the global business financial information and news provider, on Thursday announced a lower target for the Canadian dollar in the composition and 2017 weights for the Bloomberg dollar spot index.
The index tracks the performance of a basket of the leading global currencies versus the U.S. dollar, Bloomberg says in a news release, and represents developed and emerging market currencies that have the highest liquidity in the currency markets and the biggest trade flows with the United States.
Bloomberg is trimming the 2017 target weight for the loonie from 11.54% to 11.48%, while also paring the target weights for the U.K. pound and the Mexican peso.
Conversely, it’s boosting the 2017 target weights for the euro, the Japanese yen, and the Australian dollar.
As well, the Indian rupee will be included in the 2017 index, while the Brazilian real will be dropped.
The index is rebalanced once a year to capture the most important trading partners of the U.S. as reported by the U.S. Federal Reserve Board, and the triennial survey of the most liquid currencies as reported by the Bank of International Settlements, Bloomberg adds.