DXY, the US dollar index

Det amerikanska dollarindexet (USDX, DXY, DX) är ett index (eller mått) på värdet på den amerikanska dollarn i förhållande till en korg med utländska valutor, som är en korg med amerikanska handelspartners valutor. Indexet stiger när den amerikanska dollarn vinner "styrka" (värde) jämfört med andra valutor.

The US dollar index (USDX, DXY, DX) is an index (or measure) of the value of the US dollar against a basket of foreign currencies, which is a basket of the currencies of US trading partners. The index rises when the US dollar gains ‘strength’ (value) against other currencies.

The index is designed, maintained and published since 1985 by the US exchange operator ICE (Intercontinental Exchange, Inc.) with the name “U.S. Dollar Index” a registered trademark.

DXY is a weighted geometric mean of the value of the dollar against the following selected currencies:

Euro (EUR), 57.6% weight

Japanese yen (JPY) 13.6% weight

Pound sterling (GBP), 11.9% by weight

Canadian dollar (CAD), 9.1% weight.

Swedish krona (SEK), 4.2% weighting

Swiss franc (CHF) 3.6% weight


USDX started in March 1973, shortly after the dismantling of the Bretton Woods system. Initially, the value of the US dollar index was 100,000. Since then, this index has traded as high as 164.7200 in February 1985 and as low as 70.698 on March 16, 2008.

The US dollar index was given a base value of 100,000 when it started. This means that a value of 90,000 represents a -10% decrease in the value of the dollar relative to the currencies in the basket (90,000 – 100,000), while a value of 110,000 represents a 10% increase in value (110,000 – 100,000).

The composition of the ‘basket’ has changed only once, when several European currencies were devalued by the euro in early 1999. Some commentators have said that the composition of the “basket” is overdue for revision as China, Mexico, South Korea and Brazil are currently major trading partners that are not included in the index while Sweden and Switzerland continue as part of the index.

Before the introduction of the euro, the index also included five other European currencies. The euro accounts for 57.6% of the weighted value (the same overall percentage as the currencies it replaced).

Year (last business day) DXY Closing price Factors that drove the value of the dollar
1967 121.79 The gold standard locked the dollar at 35 USD per troy ounce
1968 121.96  
1969 121.74 The dollar reached 123.82 on September 30.
1970 120.64 Recession.
1971 111.21 Wage price control
1972 110.14 stagflation
1973 102.39 The gold standard ended. DXY was created in March.
1974 97.29 Watergate
1975 103.51 The recession ends
1976 104.56 The FED cut interest rates
1977 96.44  
1978 86.50 Fed raised interest rate to 20% to stop inflation
1979 85.82  
1980 90.39 Recession
1981 104.69 Reagan’s tax cuts
1982 117.91 The recession ends
1983 131.79 Tax increase. Increased defense funding
1984 151.47  
1985 123.55 The record 163.83 was reached on March 5.
1986 104.24 Tax increases
1987 85.66 Black Monday
1988 92.29 Fed raises interest rates
1989 93.93 Savings & Loans crisis
1990 83.89 Recession
1991 84.69 Recession
1992 93.87 NAFTA approval
1993 97.63 Balanced Budget Act.
1994 88.69  
1995 84.83 Fed raises interest rates
1996 87.86 Welfare reform
1997 99.57 Long-Term Capital Management goes bankrupt
1998 93.95 Glass-Steagall was repealed
1999 101.42 The Y2K scare
2000 109.13 The bursting of the tech bubble
2001 117.21 DXY rose to 118.54 after the September 11 attacks.
2002 102.26 The euro is launched as a hard currency at $0.90.
2003 87.38 The Iraq war. Jobs and Growth Tax Relief Reconciliation Act
2004 81.00  
2005 90.96 The war on terror doubled the debt and weakened the dollar.
2006 83.43  
2007 76.70 The euro rose to 1.47
2008 82.15 Low of 71.30 on March 17th
2009 77.92 ECB cuts interest rates
2010 78.96 Quantitative Easing II
2011 80.21 Operation Twist, Debt crisis
2012 – 2013 79.77 Quantitative Easing III and IV. Fiscal cliff.
2013 80.04 Government shutdown. Debt crisis, Taper tantrum
2014 90.28 Ukrainian crisis, Greek debt crisis,
2015 98.69 The Fed raised interest rates
2016 102.21  
2017 92.12 EU strengthened
2018 96.17 The Dow Jones falls.
2020 102.57 Covid19 outbreak. Massive quarantine is slowing down the global economy.

Price quotations

ICE provides live feeds for Dow Futures that appear on Bloomberg.com, Money, CNN.com, DollarIndex.org. USDX is updated when US dollar markets are open, from Sunday evening New York City local time (early Monday morning Asia time) for 24 hours a day until late Friday afternoon New York City local time.


The US dollar index is calculated with this formula: USDX = 50.14348112 × EURUSD-0.576 × USDJPY0.136 × GBPUSD-0.119 × USDCAD0.091 × USDSEK0.042 × USDCHF0.036 [10]


The index can be traded as a futures contract on the ICE exchange. It was also possible to trade this index as exchange-traded funds (ETFs), options, CFDs and mutual funds.

Why is this index so important for financial market participants?

The US dollar index is important for traders both as a market in its own right and as an indicator of the relative strength of the US dollar around the world. It can be used in technical analysis to confirm trends related to the following markets, among others:

  • Commodities priced in USD
  • Currency pairs that include the US dollar (such as those used to calculate the value of the index)
  • Stocks and indices.

Commodity prices tend to fall (at least in nominal terms) when the dollar increases in value – and vice versa. Currency pairs, on the other hand, generally move in the same direction as the dollar index if the USD is the base currency, and the opposite direction if it is the quote currency – although these ‘rules’ do not always apply.

For stocks and indices, the picture is more complicated, although US exporters would generally find that their exports are less competitive internationally when the dollar is strong, and more competitive when it is weaker. Their share prices often reflect changes in the value of the dollar.

Many traders also use the index to hedge risk – for example, to offset some of the risk associated with a long USD/JPY position by going short the Dollar index.

How has the index evolved?

In the 1970s, the index fluctuated between 80 and 110 as the US economy struggled through recession and rapidly rising inflation. When the Federal Reserve raised interest rates to lower inflation in the late 1970s, money flowed into the US dollar – causing the US dollar index to rise. It reached 164,720 in February 1985, its highest level ever.

However, such a strong dollar caused problems for US exporters, who found that their goods were no longer as competitive internationally. As a result, the US government took steps to make the currency more competitive with five countries agreeing to manipulate the dollar in foreign exchange markets as part of the ‘Plaza Accord’. The US Dollar Index fell by 51% over the next four years.

Since then, the US Dollar Index has been tracking economic developments and liquidity flows. For example, it rose as the current account generated a surplus in the 1990s, fell as US debt levels rose in the 2000s, and rallied as investors flocked to the relative safety of the dollar during the Great Recession.

What affects the price of the index?

The USD index is affected by the supply and demand of the US dollar and currencies that make up the basket – as these factors affect the price of each currency pair in the formula used to calculate the value of the US dollar index.

The supply and demand of currencies is strongly influenced by the monetary policy – especially interest rates – set by the central bank in each country. Other factors include inflation, economic developments, credit ratings, market sentiment and foreign affairs.

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