U.S. Dollar Index (DXY) is a measure of the dollar vs. six major foreign currencies

I posted this earlier:

• Has the US dollar topped, or is it just resting? Battle of the trend lines.

I you are interested ... The U.S. Dollar Index (DXY) is a measure of the U.S. dollar’s value relative to a basket of six major foreign currencies. The index was established in 1973 with a base value of 100, and it tracks the dollar’s strength or weakness over time.

DXY Currency Weightings (Current Allocation)

The DXY is heavily euro-centric, with the euro making up more than half of the index. Here’s the approximate breakdown:

1. Euro (EUR) - 57.6%
2. Japanese Yen (JPY) - 13.6%
3. British Pound (GBP) - 11.9%
4. Canadian Dollar (CAD) - 9.1%
5. Swedish Krona (SEK) - 4.2%
6. Swiss Franc (CHF) - 3.6%

Key Takeaways

• The index is heavily influenced by the euro, meaning fluctuations in the EUR/USD exchange rate significantly impact DXY.
• The Japanese yen and British pound are the next most influential currencies.
• China’s yuan (CNY) and emerging market currencies are not included, despite their growing importance in global trade.