The US Dollar Index has risen 18.26% year-to-date (YTD) as of October 10, 2022.

The US dollar is increasingly dominant against six major world currencies. This is reflected in the US Dollar Index (DXY), which has risen 18.26% to 133.14 on October 10, 2022, compared to its position on December 31, 2021 (year to date/ytd).

The US central bank (Federal Reserve/The Fed)'s aggressive move to raise its benchmark interest rates throughout this year to curb inflation has triggered the appreciation of the US dollar against major world currencies. These six major world currencies are the euro (European Union), yen (Japan), pound sterling (United Kingdom), dollar (Canada), franc (Switzerland), and krona (Sweden).

In trading on Tuesday (11/10) until 19:45 WIB, the exchange rate for the euro was traded at 0.9733 US dollars, the pound sterling at 1.1109 US dollars, and the franc at 0.9953 US dollars. The yen was traded at 145.57 per US dollar, the Canadian dollar at 1.3773 per US dollar, and the Swedish krona at 11.29 per US dollar.

The increase in food and energy commodity prices throughout this year has fueled US inflation to its highest level in four decades, reaching 9.1% (year on year/yoy) in June 2022.

This situation led The Fed to raise its benchmark interest rate five times by a total of 300 basis points (bps) this year to a range of 3.0-3.25%. This is the highest level of The Fed's interest rate in the last 14 years.