The US dollar regains its safe-haven status as its positive correlation with the VIX approaches the 2024 peak.

Golden Ten Data reported on April 14 that the Iran war has restored the traditional relationship between the US dollar and stock market volatility: risk-averse investors are once again flocking to US assets, which had been neglected after last year's tariff turmoil. Since the outbreak of the conflict, the positive correlation between the US dollar and the VIX fear index has continued to strengthen, now approaching the highest level since 2024, reviving the pattern of "the dollar rises during market turmoil and falls during periods of calm" observed over the past five years. With the US blockade of the Strait of Hormuz, Scotiabank believes the relationship between the dollar and VIX is worth monitoring, especially as future stock market volatility may be suppressed. The bank's chief foreign exchange strategist, Shaun Osborne, said on Monday: "If the situation in the Gulf region fails to trigger a substantial and sustained rebound in the VIX, the dollar may further extend its decline."