First, the impact of the dollar index.
1. The US dollar is the legal tender of the United States of America. As it is the largest currency in circulation in the world, it is widely used as a reserve currency in many countries to balance international payments. Therefore, the US dollar has become the basic currency in global foreign exchange, the main currency in international payment and foreign exchange transactions, and occupies a very important position in the international foreign exchange market.
2. The US dollar index is an indicator that comprehensively reflects the US dollar exchange rate in the international foreign exchange market and is used to measure the degree of exchange rate changes of the US dollar against a basket of currencies. It measures the strength of the US dollar by calculating the comprehensive change rate of the US dollar and a basket of selected currencies, in which each currency has a different weight in the US dollar index: Euro 57.6%, Japanese yen 13.6%, British pound 1 1.9%, Canadian dollar 9. 1% and Swedish krona 4.2%.
3. The rise of the US dollar index means the rise of the exchange rate between the US dollar and other currencies, that is, the appreciation of the US dollar. Then the major international commodities are denominated in dollars, and the corresponding commodity prices should fall. The appreciation of the dollar is beneficial to the country's overall economy, raising the value of its currency and increasing its purchasing power. However, it also has an impact on some industries, such as export. Currency appreciation will increase the price of export commodities, so it will have an impact on the export commodities of some companies. If the dollar index falls, the opposite is true.
Second, the exchange rate
1, exchange rate (also known as foreign exchange rate, foreign exchange rate or foreign exchange market) The exchange rate between two currencies can also be regarded as the value of one country's currency against another. Exchange rate is also a financial means for a country to achieve its political goals. The exchange rate will change because of interest rates, inflation, national politics and national economies. The exchange rate is determined by the foreign exchange market. The foreign exchange market is open to different types of buyers and sellers to conduct extensive and continuous currency transactions (foreign exchange transactions are conducted 24 hours a day except weekends, that is, from 8: 15 GMT on Sunday to 22:00 GMT on Friday). Spot exchange rate refers to the current exchange rate, and forward exchange rate refers to the exchange rate quoted and traded on the same day, but paid on a specific date in the future).
2. The fluctuation of a country's foreign exchange market will have an impact on import and export trade, economic structure and production layout. Exchange rate is the most important adjusting lever in international trade. A falling exchange rate can promote exports and curb imports.