Not true. The dollar index is going higher and higher.
It's spiking because a great majority of banks hold customer deposits in securities like US Treasuries - and their balance sheets are about to explode - thus causing a need to sell those assets at a loss.
2. The Index only measures the value of the U.S. dollar relative to other major currencies. I believe these rising interest rates reflect a decline in confidence in the U.S. dollar among Americans.