Dollar Index

The US Dollar Index (DXY) measures the value of the US dollar relative to a weighted basket of six major foreign currencies: the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc. The euro carries the heaviest weighting at approximately 57.6%, making EUR/USD movements the primary driver of the index. Traders and investors use the DXY as a gauge of overall USD strength, and it is closely watched during Federal Reserve policy decisions and major economic releases.