What is the US Dollar Index (DXY)?

The US Dollar Index (DXY) compares the dollar with a basket of six currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. ICE administers the index. The weights are unequal, with the euro carrying the largest share.

A rising index means a stronger dollar against the basket. Every component need not move in the same direction. Index points are not dollar amounts and do not directly measure US consumer prices or a particular exchange rate.

Example

Suppose DXY rises from 100 to 103. That is a gain of 3 points, or 3% from the starting observation. It does not mean that $100 becomes $103 in a bank account, or that each currency pair moved by exactly 3%. The figures are a teaching example, not current market data.

The observed correlation between DXY and Bitcoin is a separate measurement. The index’s direction does not determine Bitcoin’s next move.

The dollar index reading guide works through points and percentage changes. Our Bitcoin–dollar analysis examines the limits of co-movement using dated research and alternative scenarios.