1, the yield of US debt rises, indicating that the price of US debt rises, the funds in the market will be more willing to deposit in the bond market and the funds will be withdrawn from the stock market. After the withdrawal of funds, the dollar index will follow.
2. The decline in the interest rate of US 10-year treasury bonds shows that there is a shortage of funds in the market at present, so the Federal Reserve may put funds into the market by buying treasury bonds, and the cost will be reduced if there are more funds in the market. However, because the interest rate of national debt is fixed, it will reduce the yield of American debt. When the yield of US debt decreases, people are more willing to buy stocks, which will push up the US dollar index.
The dollar index is used to measure the strength of the dollar, which indirectly reflects the changes of American export competitiveness and import cost.
Extended data:
Dollar index (dollar index? USDX is an indicator that comprehensively reflects the exchange rate of the US dollar in the international foreign exchange market, and is used to measure the degree of exchange rate change of the US dollar against a basket of currencies.
It measures the strength of the US dollar by calculating the comprehensive rate of change between the US dollar and a selected basket of currencies, thus indirectly reflecting the changes in US export competitiveness and import costs.
The dollar index is not from Chicago Board of Trade (CBOT) or Chicago Mercantile Exchange (CME), but from new york Cotton Exchange (NYCE). New york Cotton Exchange was founded in 1870, which was originally composed of a group of cotton merchants and middlemen. It is the oldest commodity exchange in new york and the most important cotton futures and options exchange in the world.
1985, new york cotton exchange established the finance department, and officially entered the global financial commodity market. The first is the US dollar index futures.
The US dollar index was originally published by new york Cotton Exchange (NYCE).
From 65438 to 0998, new york Cotton Exchange and Coffee Sugar Cocoa Exchange merged to form NYBOT.
In September, 2006, New York Futures Exchange merged into Intercontinental Exchange (ICE) and became its subordinate department. Dollar index futures are traded on the American Intercontinental Exchange. The Exchange is responsible for releasing real-time data of the US dollar index and the futures price of the US dollar index.
The real-time data of the US dollar index (that is, the spot price corresponding to the ice US dollar index futures) is updated by Reuters every 15 seconds according to the real-time exchange rates of the constituent currencies of the US dollar index.
The average of the highest bid price and selling price of this currency calculated by Reuters. The calculation results are transmitted to the American Intercontinental Exchange and then distributed to data providers.
Benchmark interest rate:
Under normal circumstances, when American interest rates fall, the trend of the dollar will be weak; American interest rates have risen, and the dollar has a preference. In the first half of 1980s, although there were a large number of trade deficits and huge fiscal deficits, the US dollar remained firm, which was the result of the high interest rate policy of the United States, prompting a large amount of capital to flow into the United States from Japan and Western Europe. The trend of the dollar is greatly influenced by interest rate factors.
If a country's interest rate is higher than other countries, it will attract a large amount of capital inflows and reduce domestic capital outflows, leading to the currency being snapped up in the international market; At the same time, the income and expenditure of capital account have been improved, and the exchange rate of domestic currency has been improved.
On the other hand, if a country loosens credit, the interest rate will fall. If the interest rate level is lower than other countries, it will lead to a large outflow of capital, a decrease in foreign capital inflows and a deterioration of the capital account balance. At the same time, this currency will be sold in the foreign exchange market, leading to a decline in the exchange rate.
Discount rate:
The discount rate is the interest rate charged by the Federal Reserve when commercial banks apply for loans due to emergencies such as reserves. Although this is a symbolic interest rate indicator, its change will also express a strong policy signal. The discount rate is usually lower than the federal funds rate.