U.S. Dollar Index (DXY) History
Direct answer: The U.S. Dollar Index (DXY) measures the dollar's value against a basket of 6 currencies (EUR 57.6%, JPY 13.6%, GBP 11.9%, CAD 9.1%, SEK 4.2%, CHF 3.6%). DXY has ranged from approximately 70 (2008) to 164 (1985 peak). The index surged from 89 to 115 in 2021-2022 as the Fed raised rates aggressively, before retreating to approximately 100-105 in 2023-2024.
U.S. Dollar Index (DXY) at Year End (Selected Years, 1985-2024)
| Year | DXY (Year End) |
|---|---|
| 1985 (post-Plaza Accord) | 164 |
| 1990 | 80 |
| 1995 | 85 |
| 2000 | 108 |
| 2002 | 103 |
| 2008 | 84 |
| 2009 | 78 |
| 2011 | 80 |
| 2014 | 90 |
| 2016 | 103 |
| 2017 | 92 |
| 2019 | 97 |
| 2020 | 90 |
| 2021 | 96 |
| 2022 | 104 |
| 2023 | 101 |
| 2024 est. | 100-103 |
Source: St. Louis Fed FRED: Broad Dollar Index. Last verified: September 2026.
Frequently asked questions
How does a strong dollar affect investments?
A strong dollar has mixed effects on different investments: (1) International stocks -- a stronger dollar reduces returns for U.S. investors holding foreign stocks (foreign currency dividends convert to fewer dollars); (2) U.S. multinationals -- companies earning significant overseas revenue (Microsoft, Apple, McDonald's) report lower earnings in dollar terms when the dollar strengthens; (3) Commodities -- most commodities are priced in dollars; stronger dollar makes them more expensive for non-dollar buyers, reducing demand and often prices; (4) U.S. exporters -- a stronger dollar makes U.S. goods more expensive abroad, reducing export competitiveness; (5) U.S. importers -- stronger dollar reduces import prices, helping retailers and consumers.
What caused the dollar surge in 2022?
The DXY rose approximately 15% in 2022, from 96 to 115, driven by: (1) Federal Reserve rate hikes (425 bps) -- higher U.S. rates attract global capital flows into dollar-denominated assets; (2) safe-haven demand during global uncertainty (Ukraine war, energy crisis, fear of global recession); (3) Fed was more aggressive than other central banks (European Central Bank, Bank of Japan lagged in raising rates), creating interest rate differentials favoring the dollar; (4) U.S. economic resilience relative to Europe (energy crisis hit Europe harder). A strong dollar put pressure on emerging market economies with dollar-denominated debt.
What is the Plaza Accord and why does it matter?
The Plaza Accord (September 22, 1985) was an agreement among the G5 nations (U.S., West Germany, France, UK, Japan) to depreciate the U.S. dollar through coordinated currency market intervention. The dollar had appreciated approximately 50% from 1980-1985, devastating U.S. manufacturing exports and contributing to massive trade deficits. After the accord, the DXY fell from approximately 164 to 85 by 1989, helping rebalance trade. The Plaza Accord represents one of the most successful examples of international currency coordination. It is frequently referenced in debates about coordinating against dollar strength or addressing trade imbalances.