What is the Dollar Index?
The U.S. Dollar Index (DXY) is an index of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partners’ currencies. The Index goes up when the U.S. dollar gains “strength” (value) when compared to other currencies.
The Dollar Index is a weighted geometric mean of the dollar’s value relative to the Euro, the Japanese Yen, the Pound sterling, the Canadian dollar, the Swedish krona, and the Swiss franc.