The US Dollar Index (DX-Y.NYB) is plunging as it loses the war premium that had built up during the Iran conflict. It is on track for its third-biggest drop of the year, wiping out all of its gains since March 3, while the Bloomberg Dollar Spot Index has erased its entire 2026 gain.
That reversal is lighting a fire under risk assets, especially foreign markets that were hit hard when the dollar rebounded from its January lows. The iShares MSCI Emerging Markets ETF (EEM) is on track for its biggest jump since the post-“Liberation Day” surge on April 9, 2025.
The measurement is wide. South Korea (EWY) leads the world in exchange-traded funds with a gain of more than 10%. Chile (ECH) rose 7%, while Taiwan (EWT), Turkey (TUR), United Arab Emirates (UAE), Mexico (EWW), Japan (EWJ) and India (INDA) rose more than 5%.
Gold (GC=F) and copper (HG=F) futures are gaining 3%, while silver (SI=F) and platinum (PL=F) are rising 7%.
In other words, the dollar no longer acts as a wrecking ball for global risk assets, at least for now.
Jared Blikre is Yahoo Finance’s global markets and data editor. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.
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