U.S. Dollar Index
The U.S. Dollar Index is an index of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partners' currencies. The Index goes up when the U.S. dollar gains "strength" when compared to other currencies.
The index is designed, maintained, and published by ICE, with the name "U.S. Dollar Index" a registered trademark.
It is a weighted geometric mean of the dollar's value relative to following select currencies:
- Euro, 57.6% weight
- Japanese yen 13.6% weight
- Pound sterling, 11.9% weight
- Canadian dollar, 9.1% weight
- Swedish krona, 4.2% weight
- Swiss franc 3.6% weight
History
The make up of the "basket" has been altered only once, when several European currencies were subsumed by the euro at the start of 1999. Some commentators have said that the make up of the "basket" is overdue for revision as China, Mexico, South Korea and Brazil are major trading partners presently which are not part of the index whereas Sweden and Switzerland are continuing as part of the index.
| Year | DXY Close | Factors Driving Dollar's Value |
| 1967 | 121.79 | Gold standard kept dollar at $35/oz. |
| 1968 | 121.96 | |
| 1969 | 121.74 | Dollar hit 123.82 on 9/30. |
| 1970 | 120.64 | Recession. |
| 1971 | 111.21 | Wage-price controls. |
| 1972 | 110.14 | Stagflation. |
| 1973 | 102.39 | Gold standard ended. Index created in March. |
| 1974 | 97.29 | Watergate. |
| 1975 | 103.51 | Recession ended. |
| 1976 | 104.56 | Fed lowered rate. |
| 1977 | 96.44 | |
| 1978 | 86.50 | Fed raised rate to 20 percent to stop inflation. |
| 1979 | 85.82 | |
| 1980 | 90.39 | Recession. |
| 1981 | 104.69 | Reagan tax cut. |
| 1982 | 117.91 | Recession ended. |
| 1983 | 131.79 | Tax hike. Increased defense. |
| 1984 | 151.47 | |
| 1985 | 123.55 | Record of 163.83 on March 5. |
| 1986 | 104.24 | Tax cut. |
| 1987 | 85.66 | Black Monday. |
| 1988 | 92.29 | Fed raised rates. |
| 1989 | 93.93 | S&L Crisis. |
| 1990 | 83.89 | Recession. |
| 1991 | 84.69 | Recession. |
| 1992 | 93.87 | NAFTA approved. |
| 1993 | 97.63 | Balanced Budget Act. |
| 1994 | 88.69 | |
| 1995 | 84.83 | Fed raised rate. |
| 1996 | 87.86 | Welfare reform. |
| 1997 | 99.57 | LTCM crisis. |
| 1998 | 93.95 | Glass-Steagall repealed. |
| 1999 | 101.42 | Y2K scare. |
| 2000 | 109.13 | Tech bubble burst. |
| 2001 | 117.21 | Dollar rose to 118.54 on 12/24 after 9/11 attacks. |
| 2002 | 102.26 | Euro launched as a hard currency at $.90. |
| 2003 | 87.38 | Iraq War. JGTRRA. |
| 2004 | 81.00 | |
| 2005 | 90.96 | War on Terror doubled debt. It weakened the dollar. |
| 2006 | 83.43 | |
| 2007 | 76.70 | Euro rose to $1.47. |
| 2008 | 82.15 | Record low of 71.30 on 3/17. |
| 2009 | 77.92 | ECB lowered rates. |
| 2010 | 78.96 | QE2. |
| 2011 | 80.21 | Operation Twist. Debt crisis. |
| 2012 - 2013 | 79.77 | QE3 and QE4. Fiscal cliff. |
| 2013 | 80.04 | Taper tantrum. Government shutdown. Debt crisis. |
| 2014 | 90.28 | Ukraine crisis. Greek debt crisis. |
| 2015 | 98.69 | Fed raised rates. |
| 2016 | 102.21 | |
| 2017 | 92.12 | EU strengthened. |
| 2018 | 96.17 | Dow falls. |
| 2020 | 93.27 | COVID-19 outbreak. Massive quarantines slowdown the global economy. |
Quotes
ICE provides live feeds for Dow Futures that appear on Bloomberg.com, Money.CNN.com, DollarIndex.org. USDX is updated whenever U.S. Dollar markets are open, which is from Sunday evening New York City local time for 24 hours a day to late Friday afternoon New York City local time.Calculation
The U.S. Dollar Index is calculated with this formula:= × × × × × ×