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.
It has very little to do with the average American, if you look at how banks operate.
You're also "cherry picking" your DXY dates - since it's now higher than it was in the 90's.
Why did the dollar spike around 2000? Because of the economic crisis called the "Dot Com Bubble".
The US dollar always spikes in deflationary times - which is what we're currently in and it will be getting worse.
Yes, the DXY measures against a basket of other currencies. When DXY goes up it indicates that the "factory nations" are struggling. China is the largest factory nation and it's in its economic death spiral right now.
If you believe the opposite from me then stock up on gold, silver, and oil.
If you believe in deflation then I wouldn't hold those things at all. They're just commodities that will be dropping. Oil was only going up because of drastic OPEC supply cuts. Without that, it would be in the $50 dollar range.