US Dollar Index (DXY)
The US Dollar Index (DXY) measures the dollar's strength against a basket of six currencies, more than half of which is the euro. A rising DXY means a stronger dollar.
How it works
The basket is the euro (about 57.6%), Japanese yen (13.6%), British pound (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%) and Swiss franc (3.6%). It is based at 100 in March 1973. The mix has barely changed since 1999, when the euro replaced several European currencies.
Because of the euro's large weight, DXY and EUR/USD are nearly mirror images: when one rises, the other usually falls. The index is handy as a broad gauge: if the dollar is strengthening against everything, the story is probably about the US (Fed rates, inflation), not one specific currency.
A strong dollar often weighs on gold, commodities, emerging market stocks and crypto, since they are priced in dollars. But this is a tendency, not a law, and the links break from time to time.
DXY rises from 104 to 106, about 1.9%. Over the same period EUR/USD falls from 1.0900 to 1.0700 and gold drops 2%. Seeing DXY strength after a hawkish Fed, a trader avoids going long EUR/USD against the broad dollar move.
A common mistake is thinking DXY shows the dollar's strength against every currency in the world. The basket leaves out the Chinese yuan, the Mexican peso and many other major US trading partners. Use DXY as a guide for the majors and gold, but for a specific pair look at both currencies and the news for each.
Questions and answers
What is the dollar index in simple terms?
It is a number that shows how strong the US dollar is against six major currencies, mainly the euro.
How does DXY affect crypto and gold?
A rising dollar often weighs on bitcoin and gold, while a weak dollar tends to support them. The link is not constant, though.
Which currencies are in the DXY?
The euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.
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Updated: 2026-10-19