Current, power, and attenuation measurements with rf SQUIDs are based on the fact that the voltage from the microwave readout circuit can be made a nearly sinusoidal function of the magnetic flux threading the SQUID. We point out here that an asymmetric dc SQUID with sufficiently low inductance can achieve a very sinusoidal output voltage with good modulation depth. The spectral purity of the sinusoid can be substantially better than that obtained with rf SQUID systems. The purity improves with increasing asymmetry of the junction critical currents, and decreasing values of the LIe product, where L is the SQUID inductance and Ie is the smaller of the critical currents. Results of several calculations are presented. Substantial improvement in SQUID methods of rf current, power, or attenuation measurement may thus be possible with use of such dc SQUIDs.