Dollar Index Spot Exchange rate

Editors’ Picks

USD/JPY holds steady above mid-157.00s; moves little after BoJ Minutes

USD/JPY preserves the overnight gains following the release of BoJ Minutes on Wednesday, though it remains below the 158.00 mark through the Asian session. As investors digest a joint US-Japan intervention, worries about Japan's strained fiscal condition undermine the Japanese Yen amid the wide BoJ-Fed rate gap. However, optimism over a US-Iran peace deal, along with receding Fed-hike bets, keeps US Dollar bulls on the back foot and caps the currency pair.

AUD/USD sits near mid-0.7000s, highest since June 17 as Iran deal hopes undermine USD

AUD/USD trades around mid-0.7000s during the Asian session on Wednesday, near its highest level since June 17, with bulls awaiting a breakout through the 100-day SMA before positioning for further gains. Crude oil prices hang near a four-week low amid hopes for a US-Iran peace deal and the full reopening of the Strait of Hormuz. This helps ease inflation fears and temper Fed rate hike bets, keeping US Dollar bulls on the defensive and supporting the currency pair.

Gold keeps the range despite fresh optimism

Gold extends Monday’s optimism and approaches the $4,100 mark per troy ounce on Tuesday. The yellow metal’s recovery remains on a positive footing as uncertainty surrounding US-Iran peace efforts and the Fed’s policy outlook keeps traders prudent.

Coinbase Bitcoin Premium Index extends historical negative streak as risk appetite deteriorates

The Coinbase Bitcoin Premium Index extends its negative streak to 78 consecutive days on Tuesday, the longest on record. This reading comes amid the ongoing bearish trend, which has seen Bitcoin (BTC) drop by almost 50% from its record high to trade around $64,000.

Why the WTI sell-off may be hiding a supply warning

Prices for the barrel of the American Oil benchmark have fallen sharply as hopes of a US-Iran agreement have resurfaced, but a deeply backwardated Oil curve, tight Cushing stocks and light speculative positioning all warn that the sell-off may have gone too far.

Majors

Cryptocurrencies

Signatures

ABOUT THE US DOLLAR INDEX

The US Dollar Index (DXY, USDX) measures the value of the United States Dollar relative to a basket of foreign currencies. It is a weighted geometric mean of the dollar’s value relative to the following select currencies: Euro (57.6% weight), Japanese Yen (13.6%), British Pound (11.9%), Canadian Dollar (9.1%), Swedish Krona (4.2%) and Swiss Franc (3.6%).

The index started in 1973, following the dissolution of the Bretton Woods system, with a base value of 100.00. Values are relative to this base – for instance, a current reading of 99.800 would indicate that the dollar has depreciated by 0.2% since the start of the index.

While the Dollar Index is a geometrically weighted index rather than trade-weighted, it is concentrated in European currencies and excludes two of the US’ top trading partners, Mexico and China. As a result, it is primarily used as a speculative tool rather than by corporates or asset managers like mutual funds, insurance companies or endowments. Additionally, the geometric mean methodology artificially undervalues the USD over time.

US Dollar Index on Wikipedia

HISTORIC HIGHS AND LOWS FOR THE US DOLLAR INDEX

All-time records: Max: 164.72 on 24/02/1985 - Min: 70.70 on 16/03/2008

Last 5 years: Max: 114.78 on 23/09/2022 - Min: 89.21 on 05/01/2021

* Data as of December 2024

INFLUENTIAL ASSETS FOR THE US DOLLAR INDEX

Currencies: The US Dollar (USD), the Euro (EUR), the Japanese Yen (JPY) and the Chinese Yuan (CNY).
Commodities: Oil, Gold and Natural Gas.
Bonds: T-Bond (a marketable and fixed-interest US government debt security).
Indices: S&P 500 (American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ) and Dow Jones (DJIA or Dow Jones Industrial Average, an index tracking the performance of 30 large publicly-owned companies during a standard trading session)

INFLUENTIAL ORGANIZATIONS AND ECONOMIC DATA FOR THE US DOLLAR INDEX

The Federal Reserve (Fed) is the central bank of the United States (US) and it has two main targets: to maintain the unemployment rate at its lowest possible levels and to keep inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors and the partially appointed Federal Open Market Committee (FOMC). The FOMC organizes eight scheduled meetings in a year to review economic and financial conditions. It also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. The FOMC Minutes, which are released by the Board of Governors of the Federal Reserve weeks after the latest meeting, are a guide to the future US interest-rate policy.
The US Government and its Treasury Department impact the US Dollar Index. Events such as administration statements, budgets, new laws and regulations or fiscal policy can increase or decrease the value of the DXY.
US Gross Domestic Product (GDP) refers to the total market value of all final goods and services produced in the United States. It serves as a gross measure of market activity, indicating the pace at which the nation's economy is growing or contracting. Generally, a high reading or better-than-expected number is considered positive for the Dollar Index, while a low reading is seen as negative.