JustChartsWhat Is the US Dollar Index (DXY) and Why Do Traders Watch It?
The US Dollar Index (DXY or USDX) measures the dollar’s value against a basket of six currencies: the euro (57.6%), yen (13.6%), pound (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%) and Swiss franc (3.6%). It started at 100 in March 1973; a reading above 100 means the dollar is stronger than then against that basket. It is published by ICE.
Key facts
- Euro
- 57.6%
- Japanese yen
- 13.6%
- British pound
- 11.9%
- Canadian dollar · Swedish krona · Swiss franc
- 9.1% · 4.2% · 3.6%
- Base
- 100 in March 1973
How the DXY is calculated
The index is a weighted geometric average of the dollar’s exchange rate against the six currencies. The weights were set in 1973 and adjusted once, in 1999, when the euro replaced the German mark, French franc and other European currencies.
DXY and EUR/USD
Because the euro is 57.6% of the index, the DXY moves almost as a mirror image of EUR/USD. If you trade EUR/USD, the DXY rarely tells you something new; it is most useful as a quick read on broad dollar strength.
What the DXY does not include
The basket hasn’t changed since 1999, so it leaves out major trading partners such as China, Mexico and South Korea. Broader measures, such as the Federal Reserve’s trade-weighted dollar index, cover more currencies.
Why traders watch it
- Gold: usually moves opposite to the dollar — see what moves gold.
- Commodities and emerging markets: a strong dollar tends to weigh on both.
- US data and the Fed: DXY reacts to NFP, CPI and FOMC surprises.
Historic range
The DXY peaked near 165 in February 1985 and hit a low near 71 in March 2008. Moves of 10% or more in a year are significant for global markets.
Frequently asked questions
What currencies are in the dollar index?
The euro (57.6%), Japanese yen (13.6%), British pound (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%) and Swiss franc (3.6%).
What does DXY above 100 mean?
The dollar is stronger against the basket than it was in March 1973, when the index was set at 100.
Can you trade the DXY?
Yes, through US Dollar Index futures on ICE and through CFDs offered by some brokers. Many traders use EUR/USD instead because it is more liquid.
Put it into practice
Live charts, an economic calendar and trading calculators — free with a JustCharts account.
Compare the dollar with gold on live chartsThis article is for education only and is not financial advice. Trading leveraged products carries a high risk of losing money. Contract sizes, trading hours and leverage limits vary by broker and country — always check your own broker’s specifications.