The US dollar regains its safe-haven status, with a correlation to VIX approaching the 2024 peak.

Mars Finance reports, citing Jintiao, that the Iran war has restored the traditional relationship between the U.S. dollar and stock market volatility, with risk-averse investors rushing back into US assets. Since the conflict began, the positive correlation between the dollar and the fear index VIX has continued to strengthen, and it is now approaching the highest level since 2024. Shaun Osborne, chief FX strategist at Scotiabank, said that if developments in the Gulf region fail to trigger a significant and sustained rebound in the VIX, the dollar could further extend its downside.

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