Stock Precision

What is Dollar Index and why it's important ? Dollar Index (often referred as to DXY) is a measure of the value of the U.S. dollar relative to a basket of 6 Foreign Currencies 🔰Foreign Currency Weightages against the measure Euro - 57% Japanese Yen - 13.6% Canadian Dollar - 9.1% British Pound - 11.9% Swedish Krona - 4.2% Swiss Franc - 3.6% ⏳Created - 1973 Base Value - 100 Let me explain in simple words - If Dollar Index is 107, USD is expensive by 7%, which hurts emerging economies mostly an expensive USD puts pressure on their financial markets. If Dollar Index is at 90, its cheaper by 10% than its fair value, which will again hurt the emerging economy as majority exports goes to US. 📚Historic Value It reached an all-time high in 1984 at nearly 165, and an all-time low of around 70 in 2007. In the years since then, the U.S. dollar index has been relatively range bound, fluctuating between 90 and 110. As of tonight, its trading at 107.9, showing some signs of topping off. The index is affected by macroeconomic factors, including inflation/deflation in the dollar and foreign currencies in the basket, as well as recessions and economic growth in those countries. Last week when Japan raised its interest rate after decades, USD some weakness and slipped. Dollar Index adapts to better represent those countries that the U.S. buys from and sells to most. 💡Interpreting the USDX An index value of 120 suggests that the U.S. dollar has appreciated 20% versus the basket of currencies over a particular time period. Simply put, if the USDX goes up, that means the U.S. dollar is getting stronger in value compared to the other currencies. Similarly, an index value of 80, indicating a fall of 20 from its initial value, implies a 20% depreciation in strength relative to the other currencies. The appreciation and depreciation results are a factor of the time period in question. 📊5 ways in which dollar index impacts us? 1⃣ Stock market When the index falls, the rupee appreciates, and the dollar weakens. As a result, investors in the US see an opportunity for higher returns in India, which leads to an inflow of Foreign Institutional Investment (FII). Due to heavy inflows, there is heavy buying in the overall market, and the stock market turns bullish - goes up. 2⃣ Metal Price Change If we look at historical data, we can conclude that gold prices are inversely related to the dollar index value. When the dollar index increases and the dollar strengthens, the gold price will fall. Gold gets imported into India in large quantities, and therefore it impacts the economy as a whole. 3⃣ Fuel Prices India is the largest crude oil importer. The change in the dollar index affects crude oil prices and impacts us. When the dollar index rises, crude oil and other commodities become more expensive. It increases our import costs and widens our current account deficit. Also, it affects the profitability of the oil importers and refineries in India. 4⃣ Inflation An increase in the dollar index makes the dollar strong and depreciates the Indian rupee's value. A weakened rupee makes imports costlier and impacts Indian company profitability due to increased production costs. Increased costs for companies mean companies have to increase the prices of goods and services, which leads to inflation. The overall Gross Domestic Product (GDP) is impacted and suffers a slowdown when the dollar strengthens. 5⃣ Companies with Dollar-Denominated Debt Some Indian companies have borrowed Dollar-denominated debt for cost-effectiveness. These companies are directly affected when the dollar rises. A strong dollar proves costly to companies with dollar-denominated debt as they have to shell out more in rupees to repay their debt. It impacts the company's profitability and might lead to a financial crunch. Enjoyed reading this ? #DXY #education #investing

11000+ Flights were delayed/halted as all US Airports were closed for more than 4 hours yesterday night A total of 20,000+ flights were indirectly impacted for 1.5 million passengers after communication services broke down in US Airports A drone threat from Iran was also considered during the grounded time #US #Flight

Silver - Lowest closing in one year

Some Investors are planning to take gold loans to buy silver next week as Silver has now lost 62% of its values from highs this year Silver currently trades at $48-49 zones #Silver #Investing #satire

Trump pushes for $350 Billion Bill Military Bill for US Iran War Strong chances of revival of US Iran war now #USIranWar #Trump

Russia Ukraine War is far from over !! 🇷🇺 🇫🇮 Russia demands Finland leave NATO in Abu Dhabi talks German daily Bild reports Russia’s proposal to end war in Ukraine carries far-reaching demands from Europe, including ban on NATO military bases in Baltic states #RussiaUkraine #War

Indian consumers should pay Rs 350-360 every month for mobile recharges - Airtel Founder, Sunil Bharti Mittal #Airtel #Jio

Gold has now lost one third of its value in 2026 $5612 ⟶ $3880 Buying the dip ? #Gold #Silver #Investing

Indian🇮🇳 exports expected to break records FY 24: $778 Bn FY 25: $825 Bn FY 26: $863 Bn (Record) FY 27: $1 Trillion Target Despite the global slowdown, India is expected to increase its exports by 14-15% yoy #India #Exports

Microsoft is now down in 75 countries A suspected hack on microsoft by an AI itself is concerning ! #Microsoft #microsoft365down #AI

Our research recommended Bank Nifty can be bearish for today with macors Financial Services, Banks are top loser for the day 📉 #Nifty #BankNifty #Strategy

Crude Oil is now Up 8% in 3 sessions from its Tuesday Lows #CrudeOil

USD registered its best daily performance against INR of 35 days yesterday Rupee performed well since October 12 - after RBI's intervention, falling to 93.6 levels from ~97 levels #USDINR #Rupee #RBI

India CPI inflation rises to 6.09% in October - Highest in 2 years, much higher than RBI's upper ceiling Mildly negative for Nifty near-term — the 6.09% print strengthens the case for another 25 bps rate hike next month, pressuring rate-sensitive sectors like banks, autos & realty #CPIinflation #Nifty #Banks

HAL - Third Rejection in 4 Months from crucial resistance levels With a weak result today, stock can show some weakness tomorrow #HAL #Investing

The backbone of AI revolution - NVIDIA's Jensen Huang Resigns !!

India buys more Gold & Silver this Dhanteras–Diwali period compared to last year - Gold 2025: ~40 ton 2026: ~52 ton Growth: +30% YoY - Silver 2025: ~273 ton 2026: ~300 ton Growth: +10% YoY Value of Purchases in 2026: Gold: Rs 72,000 cr Silver: Rs 5,400 cr A sharp correction in gold prices brought buyers back, while wedding-season demand further boosted festive purchases #Gold #Silver #Investing

Clear Breakdown in Gold & Silver post Dollar Index breakout Gold is down 2.75% Silver down about 3.8% Breakout in DXY looks strong and now headed for $105+ levels 340+ new contracts opened on Gold Shorts in same time in COMEX #Gold #Silver

USD INR registers biggest Intraday loss of November, Rupee weakens #USDINR