A stronger-than-expected United States economy is strengthening the dollar index, frustrating investors who had bet the currency would wilt under a barrage of interest rate cuts that have yet to materialize.
The U.S. Dollar Index tracks the strength of the dollar against a basket of major currencies, most of whom are US trade partners.
DXY was developed by the U.S. Federal Reserve in 1973 to provide an external bilateral trade-weighted average value of the U.S. dollar against global currencies.
The six currencies used to calculate the Dollar Index with their weights in the Index in decreasing order are: Euro, Japanese yen, Pound sterling, Canadian dollar, Swedish krona and Swiss franc.
U.S. Dollar Index goes up when the U.S. dollar gains "strength" (value), compared to other currencies.