US Dollar Index Futures (2024)

FAQs

What is the U.S. Dollar Index futures? ›

US Dollar Index® Futures

In a single transaction the USDX enables market participants to monitor moves in the value of the US dollar relative to a basket of world currencies, as well as hedge their portfolios against the risk of a move in the dollar.

Looking forward, we estimate it to trade at 108.93 in 12 months time.

Is U.S. Dollar Index going up? U.S. Dollar Index value has decreased by 0.07% in the past week, since last month it has shown a 1.10% increase, and over the year it's increased by 3.78%. Keep track of all changes on the U.S. Dollar Index chart.

Simply put, if the USDX goes up, that means the U.S. dollar is gaining strength or value when compared to the other currencies. Similarly, if the index is currently 80, falling 20 from its initial value, that implies that it has depreciated 20%.

U.S. Dollar Index® Futures

The USDX complex includes futures and options available for trading at ICE Futures U.S., as well as a cash settled mini futures contract available for trading at ICE Futures Singapore. The contracts offer capital efficiencies through margin offsets across our wider FX portfolio.

Introduction. Despite uncertain macro conditions, the dollar has continued to demonstrate strength — largely thanks to sticky inflation, a resilient U.S. economy and year-to-date highs in yields.

The two biggest drivers are central bank policies (interest rates set by the U.S. Federal Reserve and its counterparts in Europe, England, Japan and elsewhere); and economic growth relative to inflation. Those factors often dictate which way money flows.

1. Kuwaiti dinar. Known as the strongest currency in the world, the Kuwaiti dinar or KWD was introduced in 1960 and was initially equivalent to one pound sterling. Kuwait is a small country that is nestled between Iraq and Saudi Arabia whose wealth has been driven largely by its large global exports of oil.

A weak currency's value has depreciated significantly over time against other currencies. This can happen for several reasons but economic fundamentals play a role. The trade-weighted dollar is an index created by the Federal Reserve to measure the value of the USD based on its competitiveness versus trading partners.

Where is USD the strongest? ›

Japan continues to be a popular choice, but Vietnam and South Korea stand as solid alternatives among numerous countries in Asia with favorable exchange rates for the US dollar. Closely following in value are South American countries: Argentina and Chile are among those offering the biggest luxury bang.

We expect 2024 to be a year of diverging trends for the dollar. It will likely move lower on a broad trade-weighted basis early in the year but stabilize as the year progresses. Although we expect a general downward drift for the dollar, performance of individual currencies will likely vary widely.

The dollar and the S&P 500 have often had a negative correlation in the past three years, meaning that when the dollar rises, stocks fall. From April to October 2022, the dollar surged and the S&P 500 plummeted. It happened again from late July to late October of last year.

A strong dollar is good for some and not so good for others. A strengthening dollar means U.S. consumers benefit from cheaper imports and less expensive foreign travel. U.S. companies that export or rely on global markets for the bulk of their sales are financially hurt when the dollar strengthens.

The dollar is strong because the US economy is healthier than those of many other countries and because the Federal Reserve keeps raising interest rates. A strong dollar hurts stocks of US companies that operate internationally and may help stocks of companies that export products to the US.

DXY Forecast: The Dollar in 2024

The majority of analysts are predicting a lower dollar in 2024 for their DXY forecast, but Morgan Stanley, HSBS, and JP Morgan are all forecasting a rise in the dollar as the US economy continues to outperform its global peers.

The USD to PKR forecast for tomorrow is currently predicting the USD/PKR exchange rate to rise to Rs 278.23 in the next 24 hours, representing a 0.09% increase.

Average exchange rate in 2024: 1283.2145 NGN.