Global Influential USD Index: What Beginners Need to Know About USDX

Most investors tend to follow stocks, gold, or oil, but very few pay attention to the (US Dollar Index), an asset that is quiet but immensely powerful. It influences global commodity prices, foreign exchange rates, and neighboring stock markets constantly changing. If you’re looking for new investment opportunities or want to understand the financial markets more deeply, knowing about USDX is essential.

USDX and the Dollar Index: The Hidden Asset in Almost Every Trade

US Dollar Index (USDX, DXY, DX) is a tool that measures the strength of the US dollar against other major currencies worldwide. Instead of comparing it to individual currencies, the system creates a basket of six major currencies weighted to provide a clearer picture.

Why is this important for investors? Because:

• The dollar’s value affects global commodity prices (gold, oil, agricultural products)
• When the dollar strengthens, global investors often sell other assets and prefer borrowing or holding dollars instead
• Changes in USDX indicate the flow of international capital

The weighted currency basket in the Dollar Index includes:

Formula and Calculation: How Does USDX Work?

The calculation formula for the dollar index involves 6 variables based on the weights of each currency: