The strength of the U.S. dollar is often cited for its influence on agricultural trade. NDSU Crops Economist Frayne Olson feels the U.S. Dollar Index is misleading. “When we talk about trade, we’re really worried about exchange rates, but that’s not what the index is. It’s a composite or a basket of other currencies.” Olson said the dollar index is heavily weighted to European currencies and not other major trade partners. “Japan is included and Canada is included, but Mexico is not. China is not; Korea is not. It misrepresents what’s happening in the world trade.”
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