DXY stands for “Dollar Index,” which is a measure of the value of the United States dollar relative to a basket of foreign currencies. The DXY is often used by traders and investors as a benchmark for the performance of the dollar in the global currency markets. The index is calculated by taking a weighted average of the exchange rates of the U.S. dollar against a basket of six major currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc.
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