U.S. Dollar Index: Difference between revisions

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[[File:US Dollar Index DXY.webp|thumb|400px|right|
{{legend|#00A2FF|outline=#0076BA|US Dollar Index (DXY)}}
{{legend-line|#F27200 solid 3px|[[United States dollar|USDUS dollar]]/[[GBPsterling]] [[exchange rate]]}}
{{legend-line|#017100 solid 3px|USDUS/[[Canadian dollar]] exchange rate}}
{{legend-line|#004D80 solid 3px|[[Euro|EUR]]/USDUS dollar ([[multiplicative inverse|inverted]]) exchange rate}}
{{legend-line|#BC002D solid 3px|USDUS dollar/[[Japanese yen|JPYyen]] exchange rate}}
{{legend-line|#FFCD00 solid 3px|USDUS dollar/[[Swedish krona|SEK]] exchange rate}}
{{legend-line|black solid 3px|USDUS dollar/[[Swiss franc|CHF]] exchange rate}}
]]
[[File:US Dollar Index from Stooq dot com.png|thumb|right|400px|US Dollar Index and major financial events]]
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It is a [[weighted geometric mean]] of the dollar's value relative to following select currencies:
* [[Euro]] (€, EUR), 57.6% weight
* [[Japanese yen]] (¥, JPY), 13.6% weight
* [[Pound sterling|Sterling]] (£, GBP), 11.9% weight
* [[Canadian dollar]] (Can$, CAD), 9.1% weight
* [[Swedish krona]] (SKr, SEK), 4.2% weight
* [[Swiss franc]] (SFr, CHF), 3.6% weight
 
==History==
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[[File:Trade Weighted USD Index.webp|thumb|400px|right|
{{legend|#3C3B6E|outline=#B22234|[[Trade-weighted US dollar index]]}}
{{legend-line|#0F64CD solid 3px|[[United States dollar|USDUS $]] / [[South Korean won|₩]]}}
{{legend-line|#810000 solid 3px|USDUS $ / [[Japanese yen|Japanese Yen¥]]}}
{{legend-line|#929292 solid 3px|USDUS $ / [[Canadian dollar|Can$]]}}
{{legend-line|#006341 solid 3px|USDUS $ / [[Mexican peso|Mex$]]}}
{{legend-line|#09A1FF solid 3px|USDUS $ / [[Euro|€]]}}
{{legend-line|#EE1C25 solid 3px|USDUS $ / [[Renminbi|Chinese RenminbiRMB]]}}
{{legend-line|#F27200 solid 3px|USDUS $ / [[Pound sterling|British Pound£ Sterling]]}}
]]
{{main|Trade-weighted US dollar index}}
The [[trade-weighted US dollar index]] is a currency index created by the [[Federal Reserve]] to measure the [[exchange rate]] of the [[United States dollar|United States Dollar]] compared to the nations that it trades with the most, the more trade a country has with the United States the more that exchange rate weighs on the index. The index was created in 1998 during the creation of the [[Euroeuro]].<ref>{{cite web | url=https://www.investopedia.com/terms/t/trade-weighteddollar.asp#:~:text=Key%20Takeaways-,The%20trade%2Dweighted%20dollar%20is%20an%20index%20created%20by%20the,dollar%20to%20all%20foreign%20currencies | title=Trade-Weighted Dollar Definition | access-date=October 5, 2022 | archive-date=October 5, 2022 | archive-url=https://web.archive.org/web/20221005035906/https://www.investopedia.com/terms/t/trade-weighteddollar.asp#:~:text=Key%20Takeaways-,The%20trade%2Dweighted%20dollar%20is%20an%20index%20created%20by%20the,dollar%20to%20all%20foreign%20currencies | url-status=live }}</ref>
 
==Quotes==