The dollar's traditional relationship with equity market volatility has been reestablished due to the ongoing war in Iran, with its correlation to the CBOE Volatility Index becoming increasingly positive. This shift marks a return to patterns seen over the past five years, where the dollar tends to rise during periods of market volatility. Since the announcement of a ceasefire between the US and Iran, the Bloomberg Dollar Spot Index has fallen nearly 1.5%, erasing much of its wartime gains. Conversely, the VIX has decreased by about seven points, trading just above 18 on Tuesday. Analysts at Deutsche Bank suggest that as risks related to the Middle East conflict subside, selling the dollar may be prudent. They note that the dollar's demand is also influenced by various factors, including central bank policies and asset performance. Bloomberg Intelligence strategists indicate that the war may reinforce a long-term bearish outlook for the dollar, prompting investors to diversify their strategies beyond it.