First of all, you need to know the concept of the U.S. dollar index, as follows
The U.S. dollar index is an indicator that comprehensively reflects the exchange rate of the U.S. dollar in the international foreign exchange market. It is used to measure the exchange rate changes of the U.S. dollar against a basket of currencies. . It measures the strength of the U.S. dollar by calculating the combined rate of change of the U.S. dollar and a selected basket of currencies, thereby indirectly reflecting changes in U.S. export competitiveness and import costs. If the US dollar index falls, it means that the US dollar has depreciated against other major currencies. The calculation principle of the U.S. dollar index futures is based on the trade settlement volume between major countries in the world and the United States, and calculates the overall strength of the U.S. dollar in a weighted manner, with 100 as the strength dividing line. After the launch of the euro on January 1, 1999, the subject matter of this futures contract was adjusted and reduced from ten countries to six countries. The euro also became the most important currency with the largest weight. It reached 57.6%. Therefore, the fluctuation of the euro has the greatest impact on the strength of the US dollar index.
The following are the weights of various currencies
Euro 57.6
Japanese yen 13.6
British pound 11.9
Canada Yuan 9.1
Swedish krona 4.2
Swiss franc 3.6
The corresponding proportion reflects the correlation between the US dollar and a basket of currencies to a certain extent. The specific relationship , space is limited, so we cannot go into details here. If you are interested, you can view my information, add me as a friend, and communicate in detail.