Definition
A measure of the dollar's value against a basket of six major currencies, led by the euro.
The story
When the dollar index rises, a dollar buys more euros, yen and pounds, and US goods get pricier for the rest of the world. Gold is priced in dollars, so a stronger dollar makes gold more expensive for everyone else.
Why markets watch it
A stronger dollar has tended to weigh on gold and on big US companies that sell abroad.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms