What is the US Dollar Index, DXY?

The symbol and abbreviation for the US dollar index is DXY. The DXY shows us the value against 6 different currencies traded all over the world: the Euro, the Japanese Yen, the British Pound, the Canadian Dollar, the Swiss Krone and the Swedish Franc.

What Influences the Dollar Index, DXY?

There are various reasons why the dollar index rises or falls. Dollar indices can also be affected by periods of monetary contraction and monetary expansion, either up or down. For the upward movement of the dollar index; The US Federal Reserve sells bonds to the market and withdraws money, in these cases the DXY gains value. The rise in interest rates is also one of the situations where the dollar index is valued. Another factor in the rise of the USD is economic growth. For a downward movement of the Dollar Index, the Federal Reserve buys bonds from the market and issues USD. In these cases, the value of the dollar and the dollar index decreases due to the increase in the supply of dollars in the market. Another reason is that there is a news flow in favor of a decrease in the value of the USD. To summarize, unemployment, inflation, current account deficit, external debt and economic developments and the course of financial markets are among the factors that affect dollar indices.

What are DXY Prices? How is the DXY Index Calculated?

DXY prices and how the DXY index is calculated are among the curious topics. It is calculated by taking the geometric mean of the currencies of 6 countries that play an important role in the bilateral trade of the United States in dollar indices. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!