ilmscore | DXY vs NIFTY: The Relationship Every Investor MUST Know | CA Rachana Ranade

DXY vs NIFTY: The Relationship Every Investor MUST Know | CA Rachana Ranade

Published: 2025-07-31
Status: Available | Analyzed

Predictions from this Video

Total: 4
Correct: 3
Incorrect: 0
Pending: 1
Unrated: 0
Prediction
Topic
Status
A practical tip suggests that if the DXY is steadily above 100, it's considered negative for Nifty. Conversely, if the DXY goes below 100, it's seen as a positive sign for Nifty.
"So all in all you can say that 100 is like a thumb rule. You can say that there's no official thumb rule per se but I'm just giving you a practical tip. Okay. So just in case if you see that it's steadily above 100, it's climbing above 100, it's going to be bad for the nifty. any anywhere where it is going to go down below 100, it's going to be ideally a positive sign for Nifty."
NIFTY
Correct
An increase in US Federal Fund Rates is predicted to lead to an increase in the US Dollar Index (DXY) due to higher attractiveness of US bonds for institutional investors.
"See, whenever FFR the Fed fund rate goes up their bonds are going to be more attractive. US bonds will fetch higher interest rates. Correct? Now if there is an institutional investor in the US, for us, for Indians is going to be a foreign institutional investor. But for such an institution which is based in USA, they may say that rather than investing in India and having some of course there are going to be some risks involved if they are investing in equity plus there is going to be currency depreciation rather than going on to all these points. If I if they were to invest directly in US bonds issued by their own government could that be a little bit more attractive? Yes. typically when US interest rates go up. So that is the reason why what will happen they would sell INR they will buy USD and because of which the demand for USD will go up US uh the DXY will go up. Okay so I hope you have understood the difference uh the the relation if overall US interest rates increase FFR increases US dollar index or the DXY will go up."
US Dollar Index (DXY)
Correct
Strong US economic data, such as good GDP numbers and low unemployment rates, is predicted to strengthen the US dollar, leading to an increase in the DXY.
"If the overall US economic data is very strong, GDP numbers are good, unemployment rates are down. These are just one or two examples. If their data is very strong, obviously their currency is going to be strong, DXY will be strong."
US Dollar Index (DXY)
Correct
During periods of global turmoil, the US dollar is expected to strengthen as a safe-haven asset, leading to an increase in the DXY.
"See, whenever there is a global turmoil, people all the all the countries also they would want to park their money in safe assets and obviously US dollar is considered as a safe asset. In this case, what will happen? the demand for dollar will go up and because of which the overall DXY as an index will also go up."
US Dollar Index (DXY)
Pending