U.S. dollar index (DXY) historical data 1973-2024 | Statista (2024)

FAQs

What is the history of the DXY? ›

It originated in 1973, with the arrival of the petrodollar and the dissolution of the Bretton Woods Agreement. As the index has only been updated once – when the euro arrived in 1999 – some argue this composition is not accurate to the current state of the world.

Some causes of the strong dollar and the eventual misalignment that followed include inflation scares, high interest rates, and the increase in the size of the federal budget deficit.

The dollar's value comes from the US' position as a critical global economic power and the country's political and economic stability. While it may hold less value than such currencies as the Swiss franc or the British pound, the dollar's global use makes it a more commercially viable currency.

Interpreting and Trading the U.S. Dollar Index (DXY)?

Simply put, if the USDX goes up, that means the U.S. dollar is gaining strength or value when compared to the other currencies. Similarly, if the index is currently 80, falling 20 from its initial value, that implies that it has depreciated 20%.

The current value of U.S. Dollar Index is 104.450 USD — it has fallen by 0.13% in the past 24 hours. Track the index more closely on the U.S. Dollar Index chart. What is U.S. Dollar Index highest value ever? U.S. Dollar Index reached its highest quote on Feb 24, 1985 — 164.720 USD.

The U.S. Dollar Index (USDX, DXY, DX, or, informally, the "Dixie") is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partners' currencies.

Historically, the United States Dollar reached an all time high of 164.72 in February of 1985.

Since mid-1980, the dollar has experienced an unprecedented appreciation in foreign-exchange markets. On a trade-weighted basis, the dollar appreciated 77 percent from its low in mid- 1980 to its most recent peak in February 1985.

The Plaza Accord was an agreement between five industrial countries to devalue the dollar. The dollar had gained too much purchasing power too quickly, damaging American exporters. Appreciation of the Japanese yen, combined with other economic factors, led to the country's "lost decade."

We expect 2024 to be a year of diverging trends for the dollar. It will likely move lower on a broad trade-weighted basis early in the year but stabilize as the year progresses. Although we expect a general downward drift for the dollar, performance of individual currencies will likely vary widely.

Is the U.S. dollar in danger? ›

The collapse of the dollar remains highly unlikely. Of the preconditions necessary to force a collapse, only the prospect of higher inflation appears reasonable. Foreign exporters such as China and Japan do not want a dollar collapse because the U.S. is too important a customer.

Prior to 1971, the US dollar was backed by gold. Today, the dollar is backed by 2 things: the government's ability to generate revenues (via debt or taxes), and its authority to compel economic participants to transact in dollars.

The relationship between the DXY index and the price of gold is an important one for gold traders and investors to understand. A rising DXY index can put downward pressure on the price of gold, while a falling DXY index can increase demand for gold and drive up its price.

A stronger dollar bull market has been negative for stocks mainly because it impacts the profits of global corporations. A stronger dollar makes imports cheaper but makes exports more expensive and less competitive on world markets.

Prior to 1971, the US dollar was backed by gold. Today, the dollar is backed by 2 things: the government's ability to generate revenues (via debt or taxes), and its authority to compel economic participants to transact in dollars.

Traditionally, EUR/USD and DXY exhibit an inverse relationship. When the US Dollar strengthens, EUR/USD tends to weaken, and vice versa. This inverse correlation is rooted in the fact that the Euro represents the alternative currency in the pair.

As rising inflation captured headlines by the start of 2022, the DXY index would surge to a highest level in nearly 20 years by mid-June, supported by aggressive tightening policy in the US and relatively dovish strategies undertaken by its international peers.