USD Index

The US dollar index Dollar index is a calculation that gives the weighted average of a basket of foreign currencies against the dollar.


It is very similar to the way stock indices work because it provides a general indication of the value of a basket of securities. Of course, "stock" but here we are talking about other major currencies in the world.


The currency basket, which is included in the index of USD.


The American dollar index consists of six foreign currencies. They are: Euro (EUR
(Yen (JPY)
Cable (GBP
(Loonie) CAD
(Kronas) SEK
(Francs) CHF


If the index consists of 6 currencies, how many countries are included in that indicator?


If the answer is "6" the answer is wrong and if the answer is 20 then you are brilliant.
There are a total of 20 countries because there are 15 EU Member States that have adopted the euro plus the other five countries (Japan, Britain, Canada, Sweden, and Switzerland) with currency holders.


It is clear that 20 countries make up a small part of the world, but many other currencies are closely following the US dollar index. This makes USDX a good tool for measuring the U.S. dollar as a global power.