DXY — U.S. Dollar Index Chart — TradingView (2024)

FAQs

What is DXY in Tradingview? ›

DXY was originally developed by the U.S. Federal Reserve in 1973 to provide an external bilateral trade-weighted average value of the U.S. dollar against global currencies.

The US Dollar Index (USDX, DXY) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of US trade partners' currencies.

.DXY: ICE U.S. Dollar Index - Stock Price, Quote and News - CNBC.

The U.S. Dollar Index (USDX) is a relative measure of the U.S. dollars (USD) strength against a basket of six influential currencies, including the Euro, Pound, Yen, Canadian Dollar, Swedish Korner, and Swiss Franc. The index was created in 1973, but remains useful to this day.

The Index goes up when the U.S. dollar gains "strength" (value) when compared to other currencies.

The index was created to help traders understand how strong or weak the U.S. dollar is in relation to foreign currencies such as the Euro, Canadian Dollar, and Japanese Yen.

The Kuwaiti Dinar is renowned as the strongest currency in the world. Introduced in 1961, it has maintained a commanding presence due to Kuwait's substantial oil reserves, which account for a significant portion of its economic output.

To trade the U.S. Dollar Index (DXY), you'll need to open an account with a derivatives provider or a futures broker. Like other indices, there isn't a physical underlying market to buy and sell, so you'll need to use derivatives products to take your position.

The index itself is relative to a base of 100.00. So, if you see a reading of 95.00, it means the dollar has depreciated 5% relative to the base. Interpreting DXY's movements is key to your trading strategies. If the index is on the rise, it's a sign the dollar is strengthening against its peers.

A strong dollar is good for the American economy. Not only does a strong dollar mean that there is a healthy demand for American-made goods and services, but, perhaps more important, it's also a show of confidence in the U.S. government and financial institutions.

Does DXY affect gold? ›

The US Dollar Index (DXY) and gold prices share a negative correlation for two reasons: 1. Gold is USD denominated. When the US dollar appreciates, gold costs more for investors using other currencies. Demand for gold thus decreases, putting downward pressure on gold prices.

Prior to 1971, the US dollar was backed by gold. Today, the dollar is backed by 2 things: the government's ability to generate revenues (via debt or taxes), and its authority to compel economic participants to transact in dollars.

The Dollar Index serves as a crucial gauge, reflecting the US Dollar's strength against major global currencies. It informs investors and traders about the Dollar's performance, with a rising DXY indicating a stronger Dollar and a declining index indicating a weaker one.

Presently, the DXY represents a weighted geometric mean of the USD's value to the exchange rates of the world's six major currencies, namely the euro, British pound, Canadian dollar, Swiss franc, Swedish krona and Japanese yen.

The United States Dollar Index or DXY measures the performance of the dollar against a basket of other currencies including EUR, JPY, GBP, CAD, CHF and SEK. The EUR is, by far, the largest component of the index, making up 57.6% of the basket followed by JPY (13.6%), GBP (11.9%), CAD (9.1%), SEK (4.2%), and CHF (3.6%).