What does the US dollar index refer to specifically?

In the foreign exchange financial market, the US dollar index foreign exchange is very important, so what is the US dollar index foreign exchange? I'd like to tell you the specific meaning of US dollar index foreign exchange?

The dollar index does not come from the Chicago Financial Futures Exchange (CBOT) or the Chicago Mercantile investment exchange (CME), but from the New York Cotton investment exchange (Nyce). Established in 1870, the New York Cotton investment exchange was initially composed of a group of cotton merchants and intermediaries. It is temporarily the oldest commodity investment exchange in New York and the most important international cotton financial futures and options investment exchange. In 1985, the New York Cotton investment exchange established the financial sector and formally entered the international financial commodity financial market. The first one was the US dollar index financial futures.

In 1998, the New York Board of trade (NYBOT) was established by merging the New York Cotton investment exchange with the Coffee Sugar Cocoa Exchange. In September 2006, the New York financial futures investment exchange (nyfe) merged into the Intercontinental Exchange (ice) and became a division of the exchange. Dollar index financial futures are traded on the intercontinental investment exchange. The investment exchange is responsible for issuing real-time data on the US dollar index and US index financial futures prices.

The real-time data of the US dollar index (i.e., the spot price corresponding to the ice dollar index financial futures) is updated by Reuters every 15 seconds based on the real-time exchange rates of the constituent currencies that make up the US dollar index. The average of the highest buying and selling prices of the currency calculated by Reuters. The calculation results are transmitted to the ice, which is then distributed to the data providers.

The US dollar is the legal tender of the United States of America. Because it is the most circulating currency in the world, many countries use the US dollar as the reserve currency to balance the global balance of payments. Therefore, the US dollar has become the basic currency in international foreign exchange exchange exchange and the main currency in global payment and foreign exchange investment transactions. It plays a very important role in the global foreign exchange financial market

The US dollar index is an indicator that comprehensively reflects the exchange rate of the US dollar in the global foreign exchange financial market. It is used to measure the exchange rate change of the US dollar against a basket of currencies. The rise of the US dollar index indicates that the US dollar has risen in comparison with other currencies, that is to say, the appreciation of the US dollar. Therefore, the major commodities in the world are priced in US dollars, and the corresponding commodity prices should fall. The appreciation of the US dollar is good for the whole economy of the country, increasing the value of the domestic currency and increasing the purchasing power. However, there are also impacts on some industries. For example, in the export industry, currency appreciation will increase the price of export commodities, so it will affect the export commodities of some companies. If the US index falls, the opposite is true.

The foreign exchange index of US dollar is a comprehensive index reflecting the exchange rate of US dollar in the global foreign exchange financial market, which is used to measure the exchange rate change degree of US dollar against a basket of currencies.

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