A country's trade-weighted exchange rate is an average of its bilateral exchange rates, weighted by the amount of trade with each country. Sterling's is at a 13-month high. This partly reflects the euro's weakness: the euro area accounts for 49.3% of Britain's trade-weighted exchange rate. The Australian dollar's strength is driven by China's demand for resources, and large foreign purchases of property. Euro-area jitters sent the Swiss franc soaring in 2011. The Swiss National Bank responded by setting an exchangerate ceiling; the franc has since weakened. Financial worries havealso prevented the us dollar, a safe-haven currency, from falling more, despite America's large current-account deficit.
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