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The dollar index measures the value of the US currency against other leading global foreign exchange instruments. The futures contract that trades on the Intercontinental Exchange has the following composition:
Source: ICE
The chart shows that the euro, Japanese Yen, and British pound comprise 83.1% of the index.
The dollar is the world's leading reserve currency because of its exchangeability and stability. Reserve currency status means that other central banks around the globe hold the US currency as an investment and for liquidity.
The dollar index traded in a range from 94.365 to 99.330 in