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DXY vs international assets — correlation and trend analysis
DXY Source: ICE U.S. Dollar Index (symbol DX-Y.NYB) ingested from Yahoo Finance — a fixed 6-currency basket (EUR 57.6%, JPY 13.6%, GBP 11.9%, CAD 9.1%, SEK 4.2%, CHF 3.6%).
Correlations: 60-day rolling Pearson correlation of daily returns between the dollar index and international asset ETFs.
A strengthening dollar typically hurts EM equities and commodities while supporting US-centric assets. Track correlation regimes to anticipate cross-currency portfolio impact.
The US Dollar Index (DXY) measures the dollar's strength against a basket of foreign currencies. A strong dollar makes imports cheaper and foreign investments less valuable in dollar terms, while a weak dollar does the opposite. This page shows how dollar movements impact different asset classes -- emerging market stocks, commodities, and international bonds tend to struggle when the dollar strengthens, and benefit when it weakens. If you own international assets, the dollar is one of the biggest hidden drivers of your returns.