The Dollar Index, also known as the U.S. Dollar Index (USDX), is a measure that tracks the value of the U.S. dollar against a basket of other major currencies. It provides a snapshot of the dollar's overall strength or weakness relative to other currencies. The Dollar Index is widely followed in global financial markets as it influences currency exchange rates, international trade, and cross-border investments. Movements in the Dollar Index can impact export competitiveness, import costs, and inflation rates.