The USD Index is a barometer of the general assessment of the US Dollar relative to a basket of foreign currencies, in a similar way that the Dow Jones Industrial Average is a picture of the US stock market.  It is a leading benchmark for the international value of the US dollar and the world’s most widely traded currency index.   Currently the index is calculated by factoring in the exchange rates of six of the major world currencies.  The breakdown is as follows: (Euro 57.6%, Japanese Yen 13.6%, British Pound 11.9%, Canadian Dollar 9.1%, Swedish Krona 4.2%, Swiss Franc 3.6%).  

The USD Index is a versatile product where traders can take advantage of the moves in the value of the US Dollar relative to a basket of world currencies.  It could also be used to hedge a portfolio of assets against the volatility of the dollar.