Measuring the value of the US Dollar via the US Dollar Index (USDX)


The U.S. Dollar Index 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” when compared to other currencies. Wikipedia

The dollar index tracks the relative value of the U.S. dollar against a basket of important world currencies. If the index is rising, it means that the dollar is strengthening against the basket – and vice-versa.

The USDX tracks the dollar’s (USD) relative strength against a basket of foreign currencies. The weightings have been fixed since 1973 (and later adjusted in 2002 when the euro replaced many European currencies):

  • Euro (EUR) – 57.6% weight
  • Japanese yen (JPY) – 13.6%
  • Pound sterling (GBP) – 11.9%
  • Canadian dollar (CAD) – 9.1%
  • Swedish krona (SEK) – 4.2%
  • Swiss franc (CHF) – 3.6%


Gold sometimes moves opposite to the U.S. dollar because the metal is dollar-denominated, making it a hedge against inflation.


Market Watch

April 24, 2023



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Dollar Index (DXY) the barometer for global currencies

Plotting the Dollar Index (DXY) over the years
To get a perspective view on the Dollar Index, we have plotted the dollar index consistently since the launch of the DXY in 1973 in the aftermath of the collapse of the Breton Woods agreement.

Source: Macro Trends


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