What is the Dollar Index?
The Dollar Index (DXY) measures the value of the US dollar relative to a basket of six major foreign currencies. It shows how the dollar performs against these currencies over time.
The six currencies included in the index are the euro (EUR) with a 57.6% weight, Japanese yen (JPY) at 13.6%, British pound (GBP) at 11.9%, Canadian dollar (CAD) at 9.1%, Swedish krona (SEK) at 4.2%, and Swiss franc (CHF) at 3.6%.
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A rising Dollar Index indicates that the US dollar is strengthening against this basket of currencies, while a falling index shows that the dollar is weakening.
This comes after Iran, the United States and Israel agreed to a two-week ceasefire on Tuesday, April 7, an last-minute deal that allowed US President Donald Trump to pull back from his threats to unleash a bombing campaign that would destroy Iranian civilisation. But attacks in Iran and Gulf Arab countries were reported on Wednesday, throwing the deal into question.
The plan also includes allowing both Iran and Oman to charge fees on ships transiting through the Strait of Hormuz, a regional official said pm Wednesday on condition of anonymity to discuss internal deliberations. The strait is in the territorial waters of both Oman and Iran. The world had considered the passage an international waterway and never paid tolls before.
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(Edited by : Shoma Bhattacharjee)
