U.S. Dollar Index

The U.S. Dollar Index (USDX, DXY, DX, or, informally, the "Dixie") 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.

[4][5] It is a weighted geometric mean of the dollar's value relative to following select currencies: USDX started in March 1973, soon after the dismantling of the Bretton Woods system.

The value of the U.S. dollar also correlates with global interest rates, particularly affecting borrowing costs for developing nations.

Conversely, USD appreciation raises interest rates, making borrowing more expensive and reducing the flow of foreign direct investment to these countries.

On the other hand, when the USD strengthens, commodity prices generally decline, which can hinder growth in these regions.