DOLLAR INDEX, USDX

The US Dollar Index (USDX) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of US trade partners' currencies. These currencies are the Euro (constituting 57.6% of the weighting), Japanese Yen (13.6%), British Pound (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.2%) and Swiss Franc (3.6%). The index started in 1973 with a base of 100, and values since then are relative to this base.

In terms of strategy, the Dollar Index is widely used to hedge risk in the currency markets or to take a position in the US Dollar without having the risk exposure of a single currency pair.

More about the basics of the Dollar index

ASSETS THAT INFLUENCE DOLLAR INDEX THE MOST

Currencies: USD, EUR, JPY and CNY.

USD, EUR, JPY and CNY. Commodities: Oil, Gold and Natural Gas.

Oil, Gold and Natural Gas. Bonds: T-Bond (Treasury bond is a marketable, fixed-interest U.S. government debt security).

T-Bond (Treasury bond is a marketable, fixed-interest U.S. government debt security). Indices: S&P500 (American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ) and DOW (or DJIA, Dow Jones Industrial Average, an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market).

HISTORIC HIGHS AND LOWS FOR DOLLAR INDEX

All-time records: Max: 129.12 on 18/11/1985 - Min: 71.58 on 08/03/2008

Max: 129.12 on 18/11/1985 - Min: 71.58 on 08/03/2008 Last 5 years: Max: 103.82 01/03/2017 - Min: 88.25 on 08/02/2018

* Data as of February 2020