← GlossaryTrade & Currency
Dollar Index (DXY)
The dollar index tracks the value of the US dollar against a basket of six major currencies, led by the euro. A rising DXY means the dollar is strengthening broadly.
Why It Matters
When the dollar strengthens globally, currencies like the rupee usually weaken, and commodities priced in dollars often fall.
In India
The dollar jumped after Kevin Warsh’s nomination as Fed chair in January 2026, one trigger for gold and silver’s historic fall.