We all know that US Dollar is the main/strong/powerful/international currency. When $ is strong then other major currencies like British Pound, Euro etc starts to get weak and when $ gets weaker than other currencies get stronger.
$ also have a direct impact on other things like the Gold and other things.
As $ is a global currency, that is why in 1973, US Dollar Index was introduced. This index is simply a comparison of US Dollar against some major currencies. Some mathematical equation is developed which compute the value of US Dollar.
You can simply say that US Dollar index show us how strong US $ is.
The currencies used in computing are:
British Pound
Euro
Japanese Yen
Canada $
Swedish KR
Swiss Franc
Currently, the value of US $ Index is around 77.70.
If you want to see how strong $ is, then I think US $ Index can give you a good estimation.
