BlockBeats News, April 14th, the Iran war has restored the traditional relationship between the US dollar and stock market volatility: Safe-haven investors are re-entering US assets, which were neglected after last year's tariff turmoil.

Since the start of the war, the positive correlation between the US dollar and the fear index VIX has continued to strengthen, now approaching its highest level since 2024, replicating the past five years' pattern of "the dollar rising during market volatility and falling when the market is calm."

With the US blocking the Strait of Hormuz, OCBC Bank believes that the relationship between the US dollar and VIX is worth watching, especially in a scenario where future stock market volatility may be contained. The bank's Chief FX Strategist, Shaun Osborne, said on Monday: "If the Gulf region situation fails to trigger a sharp and sustained rebound in VIX, the dollar may further extend its decline." (FX678)