Dollar Index Replaces VIX as New Market Gauge of Fear: Chart

(Bloomberg) -- Investors who have long used the VIX volatility index for signs of a market downturn can now add the dollar to their list of fear indicators. This is especially apparent in the case of emerging-market stocks, which have seen a rally reversed in recent weeks as the dollar’s surge makes the riskier assets less attractive. “Forget the VIX," the greenback’s spot gauge "is the new fear index if we consider the number of market cracks the dollar has exposed,” Stephen Innes, head of trading for Asia-Pacific with Oanda Corp., said in a note to clients.

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