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US dollar index

The dollar measured against a basket of developed-market currencies, with the euro carrying the largest weight.

How to read the number

A strong dollar usually means outflows from emerging markets and pressure on commodities, which are priced in it.

When the metric lies

The basket reflects the trade patterns of the last century: it contains no renminbi, so it says little about the dollar against Asian currencies.

Also known as: dollar index

Related terms