The rise of the US dollar index shows that the exchange rate between the US dollar and other currencies has risen, that is to say, the US dollar has appreciated, the major international commodities are denominated in US dollars, and the corresponding commodity prices have fallen. The appreciation of the US dollar is beneficial to the whole American economy, enhancing the value of its own currency and increasing its purchasing power.

But it will also have an impact on some industries, such as the export industry. Currency appreciation will reduce 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.

A rise in the US dollar index will lead to a fall in the prices of China's gold, oil and other commodities, which will affect the short-term trend of A shares and shrink China's foreign exchange reserves.

In addition, there are the following effects:

1. When large-scale capital flows out, it is bound to be accompanied by selling domestic assets, leading to the decline of domestic assets, such as selling real estate and selling stocks.

2. The stock market fell, and the depreciation of RMB directly benefited A shares. Part of the funds are withdrawn from the stock market to invest in US dollars, realizing asset appreciation, affecting the liquidity of stock market funds, causing the stock price to fall, and at the same time hitting investor confidence. On the other hand, the depreciation of RMB will increase the market's expectation of domestic interest rate hike to a certain extent, which is also a big negative for the stock market.

Studying abroad and traveling abroad cost more. The depreciation of RMB means that you have to pay more RMB for the same study abroad expenses. The same is true for overseas tourists, who need more RMB.

Foreign currency is the creditor's rights held by monetary authorities in the form of bank deposits, treasury bonds of the Ministry of Finance and long short-term government bonds. Can be used when the balance of payments is in deficit.

Foreign exchange mainly includes foreign currency, foreign currency deposits and foreign currency securities. It is an important part of a country's international reserves and the main means of payment to pay off international debts.

All foreign currency assets owned by a country.

It refers to the flow of money between countries and a specialized commercial activity of exchanging one country's currency for another country's currency to pay off international creditor's rights and debts.

In fact, it is the creditor's rights held by the monetary management authorities (central bank, monetary management institutions, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds, long-term and short-term treasury bonds, etc. Can be used when the balance of payments is in deficit.

Foreign exchange transactions are the exchange of one foreign currency into another. Quotation is the exchange rate, which is usually expressed by the conversion ratio between two currencies, such as USD/JPY and GBP/JPY. The exchange rate is the first currency (as the base currency) and the second currency (as the pricing currency) that represents the price.