DXY: ICE U.S. Dollar Index Stock Price, Quote and News

Check out the latest USD Index price with our chart and follow the latest news and analysis from our DailyFX experts. The below chart shows some of the major events that affected the USDX price since 2005. The 10-year notes market made a big reversal today following the CPI data.

It is used to measure the value of the U.S. dollar against currencies widely used in international trade, rather than against all currencies. USD/JPY meets with a fresh supply on Thursday and is pressured by a combination of factors. Bets that the BoJ will end its ultra-easy monetary policy underpin the JPY and weigh on the pair. The uncertainty over the Fed’s rate-hike path prompts USD selling and contributes to the decline. Kit Juckes, chief FX strategist at Societe Generale, has a longer term bearish view on the dollar but is nevertheless a buyer of euro-dollar puts on expectations that the U.S. currency will mount a final push higher. Commodity prices tend to fall (at least nominally) as the Dollar increases in value – and vice versa.

Just as a stock index measures the value of a basket of securities relative to one another, the U.S. Dollar Index expresses the value of the dollar in relation to a “basket” of currencies. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.

For many investors, the easiest avenue would be an exchange-traded fund which tracks the index directly. The Invesco DB USD Bullish ETF (UUP), for example, is designed to track the Dollar Index. It has more than $1.5 billion in assets under management and thus is a large and liquid ETF for traders looking to quickly track the value of the dollar. There is also an inverse dollar ETF, Invesco DB USD https://1investing.in/ Bearish Fund (UDN), for traders looking to capitalize on a move in the other direction. A strong dollar means other global currencies have been relatively weak, which Lynch says exacerbates inflationary pressures and financial market volatility. The USDX allows traders and investors to monitor the purchasing power of the U.S. dollar relative to the six currencies included in the index’s basket.

Further reading on US Dollar Index

Federal Reserve in 1973 after the dissolution of the Bretton Woods Agreement. It is now maintained by ICE Data Indices, a subsidiary of the Intercontinental Exchange (ICE). For investors wanting more leverage in a Dollar Index position, the Intercontinental Exchange (ICE) offers a futures contract on the index.

• Analysts use it for longer-term studies such as tracking correlations between the value of the dollar and various other assets.
• Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first.
• The 10-year notes market made a big reversal today following the CPI data.
• The ProShares UltraShort Euro (EUO) is designed to generate daily returns equal to double the inverse of the daily performance of the euro versus the U.S. dollar.
• This system was facilitated by the Bretton Woods Agreement in which essentially most of the major world leaders agreed to physical gold as the basis for U.S. dollars, and then weighted the world’s other currencies thereafter.
• The Federal Reserve created an official index (DXY) in 1973 to keep track of the dollar’s value.

The dollar index tracks the relative value of the U.S. dollar against a basket of important world currencies. If the index is rising, it means that the dollar is strengthening against the basket – and vice-versa. In the coming years, it is likely currencies will be replaced as the index strives to represent major U.S. trading partners. It is likely in the future that currencies such as the Chinese yuan (CNY) and Mexican peso (MXN) will supplant other currencies in the index due to China and Mexico being major trading partners with the U.S. In the U.S., the Federal Reserve Bank weights world currencies based on their importance to U.S. import and export activity.

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News & World Report, Seeking Alpha, InvestorPlace.com and The Motley Fool. Mr. Duggan is a graduate of the Massachusetts Institute of Technology and resides in Biloxi, Mississippi. “Until dollar strength abates, we fail to see the catalyst for a sustainable recovery in global liabilities meaning in commerce risk assets,” Lynch says. As a result, its calculation doesn’t include emerging market currencies, like the Mexican Peso (MXN) or commodity currencies. It also doesn’t include China’s renminbi (CNY), even though China is now the largest U.S. trading partner by a wide margin.

The U.S. dollar index , which measures the currency against a basket of its peers, has surged 5% since late July and stands at its highest level in around half a year. Rather than buying or selling several U.S. dollar “pairs” at the same time, you would trade the overall index that would rise and fall in line with the overall sentiment regarding the U.S. dollar. U.S. dollar pairs are the dollar paired with one other currency, for example, “USD/GBP” for the U.S. dollar traded against the British pound. This system was facilitated by the Bretton Woods Agreement in which essentially most of the major world leaders agreed to physical gold as the basis for U.S. dollars, and then weighted the world’s other currencies thereafter. Inflation or deflation of any currency, monetary policy, geopolitical conflicts, and export/import ratios, just to name a few.

U.S. Dollar Index (DXY)

We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. The Dollar Index is a tool created in 1973 to track the value of the U.S. It gives investors and analysts the ability to look at a single benchmark to judge how the value of the dollar is performing. Investors can trade ETFs based off the index’s movements, along with using it as a gauge of the dollar’s fortunes more generally. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes.

We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. It is widely quoted in financial media as a quick gauge of how the currency is faring.

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Currency pairs, on the other hand, generally move in the same direction as the Dollar Index if USD is the base currency, and opposite direction if it is the quote currency – though these ‘rules’ do not always hold true. Before the Euro, the index also included five other European currencies. The Euro accounts for 57.6% of the weighted value (the same total percentage as the currencies it replaced); the Japanese Yen 13.6%; the Pound Sterling 11.9%; the Canadian Dollar 9.1%; the Swedish Krona 4.2%; and the Swiss Franc 3.6%. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. The offers that appear on this site are from companies that compensate us.

The USD Index is affected by the supply of and demand for the US Dollar and currencies that make up the basket – as these factors influence the price of each currency pair in the formula used to calculate the US Dollar Index’s value. Euros and pounds are the only two currencies where the U.S. dollar is the base currency because they’re quoted in terms of the dollar. The others are quoted in terms of how many units a U.S. dollar will buy. The value of each currency is multiplied by its weight, which is a positive number when the U.S. dollar is the base currency. In the equation above, the euro has the most weight, followed by the Japanese yen and the British pound. Bankrate.com is an independent, advertising-supported publisher and comparison service.

ICE provides live feeds for Dow Futures that appear on Bloomberg.com and CNN Money. Dollar markets are open, which is from Sunday evening New York City local time (early Monday morning Asia time) for 24 hours a day to late Friday afternoon New York City local time. The Trade-Weighted U.S. Dollar Index, also known as the Nominal Broad-Dollar Index, is a creation of the U.S.

But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. The Plaza Accord, which included the United States, was soon enacted to weaken the greenback, and it worked with overwhelming success.

Futures allow traders to hedge their accounts against currency risk and fluctuation in the U.S. Index futures can react to both national and international economic data, as well as other reports that relate to the strength of the dollar or other currencies. That theme will be tested in September, as the market braces for a flood of key U.S. economic data as well as the Fed’s monetary policy meeting. Among the data points in focus will be Wednesday’s report on U.S. consumer prices; signs that inflation is cooling faster than expected could see investors reassess bets on how long the Fed will leave rates at current levels. The investment information provided in this table is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice.

• Asher Rogovy, chief investment officer at Magnifina, says the USDX also has some shortcomings that investors should understand.
• It also allows them to hedge their bets against any risks with respect to the dollar.
• Check out the latest USD Index price with our chart and follow the latest news and analysis from our DailyFX experts.

Analysts use it for longer-term studies such as tracking correlations between the value of the dollar and various other assets. And investors can buy financial products which track the value of the Dollar Index. Other notable exclusions include the Australian dollar, Hong Kong dollar, the Singaporean dollar, and the Indian rupee. There is a decent argument that the Dollar Index should be updated to more closely reflect modern economic and trade flow developments.

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These financial products currently trade on the New York Board of Trade. Investors can use the index to hedge general currency moves or speculate. The index is also available indirectly as part of exchange-traded funds (ETFs) or mutual funds. The U.S. dollar index allows traders to monitor the value of the USD compared to a basket of select currencies in a single transaction.

This product trades 21 hours a day, five days a week, offering near-continuous liquidity for dollar trading throughout most time zones and market moving events. There are several popular exchange-traded funds (ETFs) that track the USDX. UUP has more than $2 billion in assets under management and is extremely liquid, averaging more than 4.1 million shares of daily trading volume.