What is US Dollar Currency Index

The US Dollar Index (USDX) is a measure of the value of the United States dollar relative to a basket of foreign currencies. It is a weighted average of the value of the dollar against a subset of the world’s most widely-traded currencies, including the Euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc. The USDX can be used as a benchmark for the performance of the US dollar against a basket of currencies, and it is often used as a gauge of the overall strength of the US dollar. It is important to note that the USDX does not represent the value of the US dollar in relation to all currencies, but rather a selected group of currencies.

The fundamental difference between the Nifty and the USDX is the underlying assets they are used to measure. The Nifty is a stock index that measures the performance of the 50 largest and most liquid companies listed on the National Stock Exchange of India. The USDX, on the other hand, is a currency index that measures the value of the US dollar relative to a basket of foreign currencies. Additionally, the Nifty is calculated and maintained by the National Stock Exchange of India, while the USDX is calculated and maintained by the ICE (Intercontinental Exchange).

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