The Dollar index compares the USD against a list of six other foreign currencies - British Pound (GBP), the Euro (EUR), Canadian Dollar (CAD), Japanese Yen (JPY), Swiss Franc (CHF), and Swedish Krona (SEK). The comparison happens with a weighted geometric mean. A thorough and unbiased assessment of the dollar’s performance in the international forex market is gauged by the dollar index. Calculating the Dollar Index requires considering the exchange rates between the USD and each of the six currencies mentioned above. It reflects why each currency is important in global trade. As far as weightages are concerned, the EURO has the largest weightage. The Japanese Yen and the British Pound come later. The index assigns each currency a weight. The weights are, however, changed regularly to maintain the accuracy and relevancy of the index. The USDX index price is calculated by multiplying and combining the weighted exchange rate values.