The DXY, or the U.S. Dollar Index, measures the value of the U.S. dollar against a basket of six major currencies. These currencies include the Euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc. The index provides insight into the strength or weakness of the dollar in the global market. Traders and investors often use the DXY to gauge economic trends and make decisions regarding currency trading and investments. A rising DXY indicates a stronger dollar, which can affect international trade and investment flows, while a declining DXY suggests a weaker dollar.