The US Dollar Index (DXY, DX, USDX) measures the worth of the United States dollar comparative with a bin of different currencies, including the currencies of a portion of the US's significant trading accomplices. The Dollar Index rises when the US dollar acquires strength contrasted with different currencies in the bin and falls when the dollar debilitates.

The US dollar index is a calculation that gives the weighted average of a basket of foreign currencies against the dollar. It is similar to the way stock indices work because it provides a general indication of the value of a basket of securities.
The currency basket, which is included in the index of USD.
The American dollar index consists of six foreign currencies. they are:
Euro(EUR)
Yen(JPY)
Cable(GBP)
Loonie(CAD)
Kronas(SEK)
Francs(CHF)

The USD Index, also known as the US Dollar Index, is a measure of the value of the United States dollar relative to a basket of other major world currencies. It provides a weighted average of the dollar's value compared to a group of currencies including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc.

The USD Index serves as a key benchmark for assessing the strength or weakness of the US dollar in international markets. Traders, investors, and policymakers use it to monitor changes in the dollar's value over time and to gauge its performance against other major currencies. A rising USD Index generally indicates a strengthening US dollar, while a declining index suggests a weakening dollar.

This index plays a crucial role in global financial markets, influencing currency exchange rates, trade flows, and international investment decisions. Moreover, it serves as a valuable tool for hedging currency risk and managing portfolios with exposure to US dollar-denominated assets.

The US Dollar Index, often called the USD Index or DXY, measures the strength of the US dollar against a basket of major global currencies. These include the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc. The index shows whether the dollar is gaining or losing value relative to its key trading partners.

Traders and investors use the USD Index as a benchmark to understand overall dollar momentum. A rising index suggests a stronger dollar, which can pressure commodities like gold and oil and influence forex pairs such as EUR/USD. A falling index signals dollar weakness, often supporting risk assets and emerging markets.

In forex trading, the USD Index helps confirm trends, assess market sentiment, and manage exposure to US dollar–related risk.