What it is
The index measures the dollar's general strength or weakness against the 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%). It was established in 1973 after the breakdown of the Bretton Woods Agreement and tracks the dollar's performance over time.
A rising Dollar Index indicates a stronger dollar, making U.S. exports more expensive and imports cheaper. This can affect corporate earnings for multinational companies and commodity prices, as many commodities are priced in dollars. A stronger dollar can also impact inflation, potentially reducing import costs and dampening domestic price pressures.
Why it matters
The Dollar Index reflects the dollar's global strength, impacting import/export costs, commodity prices, and your purchasing power abroad.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice