US Dollar Index (DXY)

The US Dollar Index (DXY or USDX) is an index that measures the dollar's average value against a basket of currencies. The basket includes the euro, the Japanese yen, the British pound, the Canadian dollar, the Swedish krona and the Swiss franc, with the euro carrying the bulk of the weight. The index is calculated as a geometric weighted average and is expressed relative to a base value set in 1973.

A rising index means the dollar has generally strengthened against these currencies, while a falling one means it has weakened. Fed interest rate policy, US Treasury yields, growth differentials and global risk appetite are the main drivers of the DXY. Because commodities mostly trade in dollars, changes in the dollar index are also taken into account when following assets such as gold and oil.

The basket's composition has not changed since 1999, when the euro came into use; because it does not include currencies such as the Chinese yuan and the Mexican peso, it does not fully reflect the dollar's value against all trading partners. Futures contracts based on the index trade on the ICE Futures U.S. exchange. On Lzzo.com, the Dollar Index is shown as index points using Yahoo Finance data.