The U.S. Dollar Index (DXY) measures the value of the U.S. dollar against a basket of six major currencies, including the Euro, Japanese Yen, and British Pound. It provides a snapshot of the dollar's strength in the global market, helping investors and economists assess economic trends. The index is calculated using a weighted geometric mean of the selected currencies, with the Euro having the largest influence. A rising index indicates a stronger dollar, while a falling index suggests a weaker dollar. This information is crucial for international trade, investment decisions, and economic policy.