U.S. Dollar Index

US Dollar Index and major financial events.

The U.S. Dollar Index (USDX, DXY, DX) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies,[1] often referred to as a basket of U.S. trade partners' currencies.[2] The Index goes up when the U.S. dollar gains "strength" (value) when compared to other currencies.[3]

The index is maintained and published by ICE (Intercontinental Exchange, Inc.), with the name "U.S. Dollar Index" a registered trademark.[4][5]

It is a weighted geometric mean of the dollar's value relative to following select currencies:

History

USDX started in March 1973, soon after the dismantling of the Bretton Woods system. At its start, the value of the U.S. Dollar Index was 100.000. It has since traded as high as 164.7200 in February 1985, and as low as 70.698 on March 16, 2008.

The make up of the "basket" has been altered only once, when several European currencies were subsumed by the euro at the start of 1999. Some commentators have said that the make up of the "basket" is overdue for revision as China, Mexico, South Korea and Brazil are major trading partners presently which are not part of the index whereas Sweden and Switzerland are continuing as part of the index.

Quotes

ICE provides live feeds for Dow Futures and these are published on various websites like Bloomberg.com,[6] Money.CNN.com,[7] DollarIndex.org.[8] USDX is updated whenever U.S. Dollar markets are open, which is from Sunday evening New York City local time (early Monday morning Asia time) for 24 hours a day to late Friday afternoon New York City local time.

Trading

The Index can be traded as a futures contract on the ICE exchange. It is also available indirectly in exchange-traded funds (ETFs), options, CFDs and mutual funds.

See also

References

  1. ↑ "U.S. Dollar Index - USDX". Investopedia. Retrieved 23 March 2013.
  2. ↑ "US Dollar Index Hits 12-Year High As ECB Unveils €1 Trillion Stimulus". FXTimes. Retrieved 23 March 2015.
  3. ↑ "US Dollar Index". FXStreet. Retrieved 23 March 2013.
  4. ↑ "U.S. Dollar Futures". Retrieved 22 July 2017. The U.S. Dollar Index, together with all rights, title and interest in and related to the U.S. Dollar Index, including all content included therein (including, without limitation, it’s formulation, components, values, weightings and methods of calculation), and all related intellectual property and property rights, is the exclusive property of ICE Futures U.S., Inc.
  5. ↑ United States Patent and Trademark Office. "Trademark Search, Serial Number 74350026". Retrieved 22 July 2017.
  6. ↑ Bloomberg https://www.bloomberg.com
  7. ↑ CNN Money http://money.cnn.com
  8. ↑ Dollar Index https://dollarindex.org
  9. ↑ "Wall Street Journal Dollar Index". Dow Jones & Co. Retrieved 2013-07-24.
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