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What is the relationship between the US dollar index and the US stock market?
US dollar index: The USDollarIndex (USDOLLARINDEX) is an index that comprehensively reflects the exchange rate of the US dollar in the international foreign exchange market and is used to measure the exchange rate 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.

2. Relationship with US stocks: The rise of the US dollar index indicates that the price of the US dollar has risen together with other currencies, which means that the US dollar has appreciated. Then the world's major 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, enhancing the value of its currency and increasing its purchasing power. But it also has an impact on some industries. For example, in the export industry, currency appreciation will increase the price of export commodities, thus affecting the export commodities of some companies. If the dollar index falls, the opposite is true.

Therefore, for US stocks, the rise of the US dollar index will push US stocks higher, and vice versa, it will limit the trend of US stocks.

3. The impact of US dollar index on China stock market is relatively limited, and it will be more reflected in the impact on China foreign exchange market. The dollar index rose, the dollar appreciated, and the exchange rate of the dollar against the RMB rose.