a basket of foreign currencies

QueVivaPSV

Banned
Dutch
What does 'a basket of foreign currencies' mean in this phrase:
The dollar strengthened 0.2 percent on Friday from a 14-month low against a basket of foreign currencies.

It's a phrase in an article about the crude oil rates and the Dollar rate.

Article

I assume that it means something like 'a number of/ several foreign currencies'. Or maybe: the majority of the main currencies?

Thank you.
 
  • Pidginboy

    Senior Member
    India-Local dialect
    A nation sets the value of its own currency in accordance with with the market rate of a set of highly reliable currencies of other countries.
     
    It's economists' jargon. As I understand it, it ususally means a selection of currencies, put together to compare the performance of a single currency against. It may be that the economists would take an average of the selection and compare the single currency against that average.
     
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