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US Dollar Index (DXY): What It Is and How It Moves Markets

By VoxTradePro Editorial Team · Published 2026-11-10 · Updated 2026-11-12 · 10 min read

When the US dollar moves, almost everything priced in dollars feels it: gold, oil, silver and, more loosely, Bitcoin. The quickest way traders measure that move is a single number: the US Dollar Index, usually called DXY or "the dixie".

This guide explains what the DXY measures, how its six-currency basket works, what makes it rise and fall, and how a strong or weak dollar tends to affect commodities and crypto. It is educational material for a global audience, not a forecast or financial advice. If you are new to the markets mentioned, start with what are commodities and crypto market basics.

What is the US Dollar Index?

The US Dollar Index compares the dollar with a basket of six major currencies. It was created by the US Federal Reserve in 1973, just after the world's big trading nations let their currencies float freely, and it was set to 100 in March 1973. Since futures on it were listed in November 1985, the index has been run by the exchange group ICE (ICE Dollar Index FAQ).

Reading it is simple:

Above 100: the dollar is stronger against the basket than in March 1973.
Below 100: it is weaker.
Rising DXY: the dollar is gaining against those currencies. Falling DXY: it is losing ground.

"DXY" is actually the Bloomberg ticker for the index; ICE calls it USDX and its futures trade under the symbol DX. Traders use the names interchangeably.

The six-currency basket and its weights

The index is a weighted geometric average of six exchange rates. ICE publishes these fixed weights (ICE US Dollar Index):

Currency	Weight
Euro (EUR)	57.6%
Japanese yen (JPY)	13.6%
British pound (GBP)	11.9%
Canadian dollar (CAD)	9.1%
Swedish krona (SEK)	4.2%
Swiss franc (CHF)	3.6%

Two things follow from that table:

The DXY is mostly a euro index in reverse. With the euro at 57.6%, a big move in EUR/USD usually explains most of a day's DXY move. If the euro falls, the DXY rises, even if nothing changed in the US.
It leaves out major trading partners. China, Mexico and South Korea are not in the basket, because the weights were set from 1970s trade and have changed only once, when the euro launched in 1999. For a wider view, the Federal Reserve publishes a broad trade-weighted dollar index that includes many more currencies.

A short history in numbers

According to ICE, the index reached a high of 164.72 in February 1985, during a period of very tight US monetary policy, and a low of 70.698 in March 2008, during the global financial crisis (ICE Insights). In more recent years it has mostly moved in a wide band between the high 80s and the low 110s, with a sharp rise in 2022 as the Federal Reserve raised interest rates quickly. These swings show that the dollar can move a lot over a few years, not just day to day.

What moves the dollar index?

Interest-rate gaps. Money tends to flow toward higher yields. When US rates rise faster than rates in Europe or Japan, the dollar usually strengthens; when the Federal Reserve cuts while others hold, it often weakens.
US data. Inflation (CPI), jobs reports and growth figures change expectations for Fed policy. Strong data can lift the dollar; weak data can drag it down. Check upcoming releases on our economic calendar.
Other central banks. Because the basket is mostly euro and yen, decisions by the European Central Bank and the Bank of Japan matter almost as much as the Fed.
Risk sentiment. In a crisis, investors often buy dollars and US Treasuries for safety, so the DXY can rise during market panics even when US news is bad.
Trade, fiscal and political news. Tariffs, budget deficits and elections can shift views on US growth and the dollar's role.

How the dollar affects gold, oil and Bitcoin

Gold

Gold is priced in dollars worldwide, so a stronger dollar makes it more expensive for buyers using other currencies. A strong dollar also often comes with higher US real interest rates, which make a non-yielding asset like gold less attractive. That is why gold and the DXY often move in opposite directions. It is a tendency, not a rule: gold and the dollar can rise together when investors are buying both as safe havens, or when central banks are buying gold heavily. See our how to trade gold guide and the live gold chart.

Oil

Crude oil is also priced in dollars, so a weaker dollar can support demand from importers whose currencies have gained. But oil has stronger drivers of its own: OPEC+ output, inventories, wars and economic growth. Over short periods the dollar is usually a background factor, not the main one. Our guide to what moves oil prices covers the full list.

Bitcoin and crypto

Bitcoin is not priced off a basket, but it is sensitive to global liquidity and risk appetite. Phases of a rising dollar and tighter financial conditions have often been tough for crypto, while a falling dollar has often coincided with easier conditions. The correlation changes sign and strength over time, so treat it as context. Compare the two stores of value in gold vs Bitcoin.

How traders use the DXY in practice

Check the dollar before a commodity trade. If you are buying gold while the DXY is breaking out higher, you are trading against a common headwind. That does not make the trade wrong, but it may justify a smaller size. See position sizing.
Watch event days. CPI, US jobs data and Fed decisions can move the dollar and dollar-priced assets in seconds. Many traders reduce size or wait for the release.
Look for confirmation, not cause. A gold breakout while the dollar is also falling has two forces behind it. A gold rally while the dollar is rising may be driven by safe-haven demand, which can reverse quickly.
Use the same chart tools. Support and resistance, moving averages and other indicators work on the DXY chart the same way they work on gold or Bitcoin.

Common mistakes

Treating the inverse link as a law. Gold and the dollar sometimes rise together. Always check the other drivers.
Forgetting the euro weight. A DXY move can be mostly euro weakness, not dollar strength. Look at EUR/USD as well.
Confusing the index with a tradable product. The DXY itself is an index. Traders gain exposure through ICE futures, ETFs or CFDs, each with its own costs and risks; see futures, spot and CFDs.
Ignoring leverage. Currency products are often traded with high leverage. Read risk management basics first, and practise risk-free in the paper trading simulator.

Not financial advice. This guide is for education only; markets can move against any rule of thumb.

Frequently asked questions

What is the US Dollar Index (DXY)?

The US Dollar Index measures the value of the US dollar against a fixed basket of six major currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. It started at 100 in March 1973, so a reading of 105 means the dollar is about 5% stronger against that basket than at the start.

Which currencies are in the DXY and what are the weights?

Euro 57.6%, Japanese yen 13.6%, British pound 11.9%, Canadian dollar 9.1%, Swedish krona 4.2% and Swiss franc 3.6%, according to ICE, which runs the index. The weights have changed only once, when the euro replaced several European currencies in 1999.

Why does a strong dollar often push gold and oil lower?

Gold and oil are priced in US dollars worldwide. When the dollar strengthens, they become more expensive for buyers paying in other currencies, which can cool demand. A strong dollar also often comes with higher US interest rates, which raise the opportunity cost of holding gold. The link is common but not fixed.

Does the dollar index affect Bitcoin?

Often, but loosely. Periods of a rising dollar and tightening financial conditions have tended to be harder for risk assets, including crypto, while a falling dollar has often coincided with easier conditions. The relationship changes over time and should not be used as a trading signal on its own.

What moves the US Dollar Index?

Mainly the gap between US interest rates and rates abroad, US inflation and jobs data, Federal Reserve and European Central Bank decisions, risk sentiment (the dollar is often bought in a crisis), and trade or political news. Because the euro is 57.6% of the basket, the EUR/USD exchange rate drives most daily moves.

Is this financial advice?

No. This guide is educational only. Not financial advice. Currency and commodity markets are volatile, and leveraged trading can lose more than you expect.