Source: Financial Times, 2nd March 2011
Investors want safety and they are not finding it in the dollar. This is a change. In the "risk-on, risk-off" regime of correlated trading, which has adhered since 2007, rising tension has translated into a rise in the dollar. Higher equity volatility (in the Chicago Board Options Exchange's Vix index) or falling emerging market stocks both entail a stronger dollar.





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