The index is a comprehensive indicator of the US dollar‘s market situation and is used to measure the degree of change in the exchange rate of the US dollar against a basket of currencies.
It measures the strength of the dollar by calculating the rate of change of the dollar against a combined basket of selected currencies.
The rise of the dollar index indicates the rise of the dollar compared with other currencies. That is to say, the major international commodities are denominated in dollars, so the corresponding commodity prices should fall.
The appreciation of the dollar is good for the entire economy of the country, raising the value of the domestic currency and increasing purchasing power.
But it also has an impact on some industries, for example, the export industry, which raises the price of the export goods, so it has an impact on the export goods of some companies.
If the American index falls, the opposite is true.