Financial Markets

DXY

The US Dollar Index measures the dollar against a fixed basket of six currencies, weighted euro 57.6%, yen 13.6%, pound 11.9%, Canadian dollar 9.1%, Swedish krona 4.2% and Swiss franc 3.6%. It is a geometric weighted average benchmarked to 100 at its 1973 start, so a reading of 105 means the dollar is 5% stronger than that baseline. The weights have not been rebalanced since the euro replaced its legacy currencies in 1999, which is why it is really a dollar-versus-Europe gauge. A strong dollar has historically been a headwind for Bitcoin and risk assets.