What is dollar index

The ICE U. Dollar Index futures contract is the only publicly available, regulated market for U. Dollar Index trading allowing virtually round-the-clock access to futures traders around the world. This is why the ICE U. USDX is the umbrella term for the U. The ICE Exchange symbol for the value of the underlying Dollar Index sometimes called the cash or spot index is also DX without a month or year code , although different data providers may use different symbols.

DXY is more commonly used when referring to the dollar cash or spot rate, while DX is geared more for futures traders. Although as mentioned, DX can also refer to the spot rate as well. Confusing right? The next highest is the Japanese yen , which would make sense since Japan has one of the biggest economies in the world. The euro makes up such a huge portion of the U. The euro replaced the last five of these currencies. The Index was adjusted once when the euro was introduced as the common currency for the European Union EU bloc of countries.

Dollar Index is calculated in real-time approximately every 15 seconds. Your Practice. Popular Courses. What Is the U. Key Takeaways The U. The index was established shortly after the Bretton Woods Agreement dissolved in with a base of , and values since then are relative to this base. Article Sources. Investopedia requires writers to use primary sources to support their work.

These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. A currency basket is comprised of a mix of several currencies with different weightings. The USD is the abbreviation for the U.

Key Currency A key currency is a currency with a relatively stable value that is used as a benchmark for international contracts, trade, and foreign exchange. Trade-Weighted Dollar Definition The trade-weighted dollar is an index created by the Fed to measure the value of the USD, based on its competitiveness versus trading partners. What Is a Clean Float? A clean float, also known as a pure exchange rate, occurs when the value of a currency is determined purely by supply and demand.

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