Deep Tide TechFlow message, April 14 — the Iran conflict has restored the traditional relationship between the US dollar and stock market volatility: risk-averse investors are once again pouring into US assets, which had been neglected after last year’s tariff turmoil. Since the outbreak of war, the positive correlation between the US dollar and the panic index VIX has continued to strengthen, and it is now approaching the highest level since 2024, recreating the past five years’ pattern of “the dollar rises when markets are volatile and falls when markets are calm.” With the US blocking the Strait of Hormuz, Scotiabank believes the relationship between the US dollar and VIX is worth paying attention to, especially if future stock market volatility may be suppressed. This week, the bank’s chief forex strategist, Shawn Osborn, said on Monday: “If the situation in the Gulf does not trigger a large sustained rebound in the VIX, the dollar could further expand its losses.”(Jin10)