DXY (Dollar Index)

The DXY (Dollar Index) measures the strength of the U.S. dollar compared to a basket of six major foreign currencies like the euro and yen. Think of it as a report card for the dollar—higher scores mean the dollar is stronger relative to other currencies. You'll see it pop up in financial news because a stronger dollar affects everything from how expensive imports are to which countries' stocks look attractive to American investors. For example, when the DXY rises sharply, it often means U.S. exports become pricier overseas, which can pressure multinational company earnings. It's one of those macro indicators that moves markets even if you're not directly trading currencies.