A representation of the foreign currency price of the U.S. dollar or the export value of the U.S. dollar.

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When this index increases, the value of the dollar increases, making it easier for Americans to afford imports. However, an increase in the index also makes American exports more expensive in other countries.

Related Links:
Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers. Currency Exchange: Floating Rate Vs. Fixed Rate

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