There is two dollar indexes, the first one is the most used  and  it is the one we see every day. It is a  weighted mean of the dollars value relative to the following currencies , as a you can see it is heavily weighted towards the Euro.

The other one is a more broad based index, it is the real trade weighted dollar index and it gives a much better picture of the dollars appreciation or depreciation.

The graph shows then  real trade weighted dollar index in red and the dxy index in purple. The last trade on both was April 4, 2025.

 

It is a weighted geometric mean of the dollar's value relative to following select currencies:

• Euro (EUR), 57.6% weight
• Japanese yen (JPY), 13.6% weight
• Pound sterling (GBP), 11.9% weight
• Canadian dollar (CAD), 9.1% weight
• Swedish krona (SEK), 4.2% weight
• Swiss franc (CHF), 3.6% weight

How the Trade-Weighted Dollar Is Used

The trade-weighted dollar is used to determine the U.S. dollar's purchasing value as well as to summarize the effects of dollar appreciation and depreciation against foreign currencies. Imports to the U.S. become less expensive when the value of the dollar increases. Exports to other countries become more expensive.

The trade-weighted dollar is a measurement of the foreign exchange value of the U.S. dollar compared to certain foreign currencies. It gives importance and weight to currencies that are most widely used in international trade rather than comparing the value of the U.S. dollar to all foreign currencies. The currencies are weighted differently so changes in each currency will have a unique effect on the trade-weighted dollar and corresponding indexes.12