U.S. Dollar Index - USDX

What Does U.S. Dollar Index - USDX Mean?
A measure of the value of the U.S. dollar relative to majority of its most significant trading partners. This index is similar to other trade-weighted indexes, which also use the exchange rates from the same major currencies.

Investopedia explains U.S. Dollar Index - USDX
Currently, this index is calculated by factoring in the exchange rates of six major world currencies: the euro, Japanese yen, Canadian dollar, British pound, Swedish krona and Swiss franc. This index started in 1973 with a base of 100 and is relative to this base. This means that a value of 120 would suggest that the U.S. dollar experienced a 20% increase in value over the time period.

It is possible to incorporate futures or options strategies on the USDX. These financial products currently trade on the New York Board Of Trade.

Related Terms

Exchange Rate
Forex - FX
Futures
Market Index
New York Board Of Trade - NYBOT
Option
Trade-Weighted Dollar
More Related Terms

Related Links

Investing Beyond Your Borders - Investing abroad poses risks, but can also help you diversify. Discover ways to invest in foreign stocks.
Taking Advantage Of A Weak U.S. Dollar - Learn to allocate your investments to profit from a falling greenback.
Forces Behind Exchange Rates - Find out how a currency's relative value reflects a country's economic health and impacts your investment returns.
The Fundamentals Of Forex Fundamentals - Charting is not the only way to analyze the foreign-exchange market. Learn how to analyze the economic indicators.
What's the relationship between a country's currency and the strength of its economy?
What is the correlation between American stock prices and the value of the U.S. dollar?
Play Foreign Currencies Against The U.S. Dollar - And Win - A drop in the dollar is no reason to panic. Learn to exploit the greenback's decline and profit from it.

Rate this Term: Your Rating: Overall Rating: Vote Now!